By Savyata Mishra
June 26 (Reuters) - Lululemon shareholders have elected three management-backed directors, including former Levi Strauss chief Chip Bergh, cementing the settlement of a bruising proxy battle with its founder and paving the way for the incoming CEO to focus on reviving the athleisure brand.
The company also disclosed on Friday that two of founder Chip Wilson's nominees, Marc Maurer and Laura Gentile, have been appointed as independent directors, taking the board strength to 11. A third
mutually agreed director will join by October 1, as part of the truce struck last month.
Thursday's closed-door vote installed Bergh alongside Unilever marketing executive Esi Eggleston Bracey and veteran finance leader Teri List, bolstering the board with directors experienced in brand-building and corporate governance as the Vancouver-based company prepares for a broader reset.
Wilson, who owns roughly 8.6% of the company, has publicly sparred with the company's management since December, weighing on the stock and exposing deep tensions over strategy, leadership and the brand's direction.
Under the agreement, Wilson has also agreed to an 18-month standstill on public criticism.
The settlement and voting outcome give former Nike executive Heidi O'Neill some room to maneuver as she takes over in September.
Lululemon, associated with its sophisticated leggings and yoga pants, is trying a reboot when competition from upstarts, including Alo Yoga and Vuori, has intensified.
The company earlier this month forecast the first drop in sales since the pandemic in the current quarter, as well as a squeeze on margins from heavier discounting and tariff-driven cost pressures.
The stock has halved in value over the past 12 months.
Last year, activist investor Elliott Investment Management built a stake worth $1 billion, and was pushing for leadership and strategic changes, including backing former Ralph Lauren executive Jane Nielsen as a potential CEO candidate. It has not publicly commented on Lululemon's agreement with Wilson.
Analysts have said the company must win back core customers with fresher products and sharper brand positioning as competitors chip away at market share.
Meanwhile, attention is also on Lululemon's $1.8 billion net cash treasure chest and how it would be deployed. It is widely expected that the company could invest it in new categories, upgrade stores or accelerate international expansion.
(Reporting by Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila)
