Luluemon (LULU) -) has never been exactly the quietest company in the room.
The workout-apparel brand got its start in 1998 when the American-Canadian Chip Wilson established the brand in Vancouver.
Related: Hertz blamed for bizarre actions against its car rental customers
In the years after he founded it Wilson worked tirelessly to make Lululemon the juggernaut it is today.
Originally, the concept for Lululemon came to Wilson in a yoga class, where he thought he could roll out a line of leggings to enhance the look of female participants' physiques. The idea took off and less than 10 years after its founding, Lululemon raised $327.6 million for its IPO in July 2007.
In 2013 Wilson stepped down as CEO, and in 2015 he resigned from the board.
Lululemon CEO opines on company approach
Wilson may no longer be officially tied to the company, which has a $65 billion market cap, but he still maintains a very public opinion about it.
In a recent interview with Forbes, he suggested that the company seems to be losing its way in at least one arena.
“[Lululemon is] trying to become like the Gap, everything to everybody,” he said. “And I think the definition of a brand is that you’re not everything to everybody. …You’ve got to be clear that you don’t want certain customers coming in.”
He specifically called out the "whole diversity and inclusion thing” and said the company's use of certain ads or models was “unhealthy,” “sickly” and “not inspirational.”
Shortly after the interview went live, a Lululemon spokesperson released a statement on behalf of the company.
“Chip Wilson does not speak for Lululemon, and his comments do not reflect our company views or beliefs,” the fitness brand said. “Chip has not been involved with the company since his resignation from the board in 2015 and we are a very different company today.”
Lululemon no stranger to controversy
Lululemon is no stranger to controversy. In 2013 it was accused of selling see-through yoga pants, particularly in the popular color black. The company recalled the pants, which accounted for about 17% of its women's apparel.
The company has also been accused of putting so-called forever chemicals in some of its products, unintentionally or otherwise.
Forever chemicals, or PFAs (per- and polyfluoroalkyl substances) are a category of chemicals that don't break down easily and resist things like water and odor. But routine exposure to them has also been linked to cancer, thyroid dysfunction, obesity, infertility, and liver damage.
"PFAs have been found in a wide variety of garments such as rain jackets, hiking pants, shirts and yoga pants and sports bras made by popular brands like Lululemon and Athleta," a report by CBS News claimed in March 2023.
Bloomberg News reported in February that Lululemon aimed to remove the chemicals by year-end 2023. TheStreet has requested comment from the company.
Discuss trade ideas with hedge-fund managers and experienced day traders. Get Real Money Pro now.
