Lululemon founder Chip Wilson resigns from board

Chip Wilson, the founder of Lululemon Athletica, has quit the company's board, saying the yoga-wear maker appeared to be "back on track" after a tumultuous period beset by falling sales, boardroom turmoil and a plunging share price.

Mr Wilson resigned on Monday, six months after a public disagreement with other directors regarding the group's strategy led to him selling half his stake to private equity firm Advent International for $845m.

A once-loved momentum stock thanks to its leading position in the fast-growing "athleisure" space, Lululemon shares fell 40 per cent after complaints in 2013 that its yoga pants were excessively see-through, leading to a product recall and the exit of chief executive Christine Day.

The fallout worsened when billionaire Mr Wilson had to step down as chairman and lost almost half his fortune, after blaming the sheerness issues on the size of women's thighs, triggering a backlash.

"Some women's bodies just don't work for the pants," he said in a television interview. "It's really about the rubbing through the thighs, how much pressure is there over a period of time."

Mr Wilson, who founded Lululemon in 1998, left a day-to-day management role in January 2012. An outspoken industry figure, he had become well known for his unorthodox statements, including that the company did not make pants for women larger than a size 12 because it took 30 per cent more fabric to create plus-size clothes.

"It's a money loser, for sure. I understand their plight, but it's tough," he told a Canadian newspaper.

In June he criticised the board's vision for the company and voted against two directors, including chairman Michael Casey, saying they were pursuing short-term goals at the expense of long-term strategy. However, both were re-elected.

As part of his reconciliation with the directors in August, which led to the sale of half his stake, Mr Wilson also agreed not to pursue a buyout for at least a year. In turn, Lululemon agreed to review its governance practices while giving two board seats to Advent.

In recent months, the company's performance has rebounded, steered by new chief executive Laurent Potdevin. The shares are up more than 70 per cent over the past six months.

"Trying to affect a fundamental shift in direction is hard and I had to raise a strong voice to make myself heard while taking decisive action to implement change," Mr Wilson said.

"I am happy to say that I now believe the company has returned to the core values that made it great - product, brand and culture - and is back on track."

He said he planned to focus on other ventures, including working with his son and his wife on their new business Kit & Ace.

Lululemon shares were down 1.4 per cent to $65.34 during early trading in New York.

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