Lululemon (LULU) has been stuck in a rough stretch. The stock has fallen nearly 60% over the past year and about 37% in 2026, as North American sales weakened, tariffs pressed margins, and the founder’s proxy fight kept the market on edge.
Now that fight is easing. Lululemon reached a deal with founder Chip Wilson that pauses his public criticism and gives his side two board seats, and investors liked the news enough to push the stock up about 3% in Wednesday trading. That does not fix the business overnight, but it does remove one ugly distraction.
