lululemon Highlights Strength of its Refreshed Board, with the Right Expertise to Drive the Company’s Next Phase of Growth and Enhanced Shareholder Value

Dear Fellow Shareholder,

We are confident in lululemon’s future. Building on decades of growth and value creation, your Board and the company’s leadership are taking decisive steps to address recent performance with bold actions that position the company for its next phase of success.

Creativity and performance have always been – and will continue to be – at lululemon’s core. Guided by the mindful athlete as our true north star, our team creates with intention and remains focused on blending technical fabric innovation, elevated design, and transformative experiences. lululemon has always been more than a brand. It is a trusted community built on human connection, inspiration, and a shared pursuit of growth. Our commitment to mindful performance is how we support our guests and collective, and work to inspire the world to sweat, grow, and connect.

With an experienced and refreshed Board, an incoming CEO who brings a unique balance of creativity and operational discipline, and our strong company leadership team advancing a clear set of strategies with urgency and focus across the company, we are confident in our ability to accelerate growth and deliver enhanced shareholder value.

Your vote at this year’s Annual Meeting is critically important and we strongly urge you to use the WHITE proxy card to vote “FOR” lululemon’s three highly qualified directors – Chip Bergh, Esi Eggleston Bracey, and Teri List – for election to your Board of Directors. These directors are proven leaders with deep industry, innovation, finance, and governance expertise.

Dennis J. “Chip” Wilson, who stopped serving on the Board over a decade ago for well-documented reasons, has been attacking the company and the Board for many years, damaging the brand and hurting shareholders. He has now put forward three opposing nominees in an attempt to regain increased influence over the company that he has coveted since he left. Your Board firmly believes that replacing any of lululemon’s directors with Mr. Wilson’s less qualified nominees would endorse his misguided perspectives, deprive the company of critical skills and expertise, and risk derailing our progress in an especially pivotal time for our business and organization.

The election of any of Mr. Wilson’s nominees would put our forward motion at risk.

Your Board has Overseen Significant Historical Growth and Value Creation

and is Taking a New Direction with a Clear Plan to Restore Product Leadership

lululemon created an entirely new apparel category by providing women practicing yoga an alternative to the clothing available at the time that did not fit or perform well. The insight shaped the company’s DNA and provided the foundation for our enduring brand pillars – technical performance, a fabric-first innovation philosophy, a community-centered retail model, and a lifestyle identity rooted in wellness, movement, and mindfulness. lululemon has demonstrated an ability to translate these brand pillars into significant sustained growth and cultural relevance, by empowering mindful athletes beyond yoga, as we have built one of the most distinctive brands in global athletic apparel.

Mr. Wilson stepped down as CEO of lululemon in 2005 when revenues were less than $85 million. A new CEO was appointed to help scale the business, and the company went public in 2007. At the start of 2015, Mr. Wilson had to step down from the Board, separating from the business entirely, as a result of several brand-damaging public controversies and his involvement in a competing business. lululemon was generating less than $2 billion in annual revenue at the time.

Over the past decade, your Board has guided lululemon through a significant period of growth. The company achieved a 10-year revenue CAGR of 18%, an operating income CAGR of 20%, and a diluted earnings per share CAGR of 22%. In fiscal 2025, annual revenue reached $11.1 billion, operating income increased to $2.2 billion, and we ended the fiscal year with $1.8 billion in cash and no debt. The company’s historic growth and value creation have been driven by strong performance in North America and supported by strategic investments made to increase the digital business, grow the Men’s category, and expand into several new and important international markets. We scaled the company’s footprint from 365 stores in 10 markets to over 850 stores in more than 30 markets and brought lululemon’s ethos beyond yoga to athletes across even more activities, including run, train, golf, and tennis.ⁱ

Financial performance remained robust through fiscal 2023, when the company delivered year-over-year revenue growth of 19%, including double-digit gains in both our Women’s and Men’s categories and 36% growth in accessories and other categories. All channel performance was equally strong year-over-year, with store revenue up 21% and digital revenue up 17%. International markets emerged as a key growth engine, supported by continued product innovation across core franchises such as Align, Scuba, and ABC, alongside new introductions like Wundermost.

In fiscal 2025, after year-over-year revenue growth had slowed to 10% in fiscal 2024, with performance in North America softening and comparable sales declining slightly, your Board initiated a fact-based diagnostic of the business to more deeply review the drivers of these trends. This work showed there was a need for changes to strategy and leadership across several areas of the business. In conjunction with the diagnostic, we took meaningful steps to strengthen the broader leadership team, which included bolstering our product team and appointing and promoting new leadership to oversee lululemon’s global commercial strategy and regions. Ultimately, your Board identified the need to further enhance the team’s capabilities. In December 2025, the company announced a CEO transition, so the Board could conduct a broad, open search for the company’s next leader.

To guide the company forward during this critical period, your Board appointed two leaders to serve as interim co-CEOs: Meghan Frank, who has served as Chief Financial Officer since 2020, and André Maestrini who joined the company in 2021 and was promoted last year to President and Chief Commercial Officer. With the support of Board Chair Marti Morfitt in her current role as Executive Chair, and the broader lululemon leadership team, Ms. Frank and Mr. Maestrini seamlessly stepped in to lead the business during this period.

Advancing a Clear Set of Strategies

Your Board also pushed for deliberate steps to reset our strategic focus and course-correct where needed. Since their appointment as co-CEOs, Ms. Frank and Mr. Maestrini have led our leadership team in refining and driving our action plan centered on three pillars – product creation, product activation, and enterprise enablement. We are executing a clear set of strategies in each pillar that is designed to deliver a positive impact on the business this year and into the future. Our team is focused on:

• Re-energizing the creative product engine. We are accelerating innovation and improving the speed, agility, and quality of our go-to-market process. Our product strategy is focused on newness and maintaining our premium positioning. We are increasing full-price sales and managing inventories tightly.
• Accelerating brand strength and driving product discovery and excitement. We are bringing our product to life through elevated storytelling, immersive brand activations, and culturally relevant moments that deepen guest connection in North America and around the world. We are better aligning innovation, product drops, and brand experiences.
• Supporting efficiency across our organization and empowering our people and culture. We are simplifying our operations, focusing on scaling more effectively and remaining disciplined in store footprint expansion, while continuing to invest in key growth initiatives. Our leadership team is committed to continuing to support the culture that has always been central to lululemon and our success.

We know our guests expect new and unparalleled product from us in terms of design, fabrication, performance, and innovation – and that is what we are working to continually deliver. While there is significant potential yet to be realized, the work we have underway is already visible across the business: product innovations and newness such as Unrestricted Power, ThermoZen, and our latest run collection, exciting brand and product activations that bring our communities together, and a lululemon team that is energized about serving our guests and collective. Over time, we expect these and other initiatives we have underway to fuel a return to growth in North America, drive continued international momentum, and set the company up for its next phase of success.

The Right CEO to Drive lululemon’s Next Phase of

Transformation, Innovation, and Operational Excellence at Scale

A bold future starts with bold leadership. Your Board knows that having a world-class CEO who has the optimal combination of knowledge and skills is essential for lululemon’s next phase. Following a rigorous search process that evaluated a broad slate of highly qualified candidates across the retail and consumer landscape, the Board identified industry veteran Heidi O’Neill to be the company’s next CEO. Ms. O’Neill is the ideal executive to lead lululemon forward – bringing the unique balance of creativity and operational discipline required at this pivotal moment.

As the Board initiated the CEO search, we established criteria that encompassed both turnaround and growth experience. We recognize there are parts of lululemon’s business that need a reset, but that should not be the end game. The lululemon brand remains fundamentally strong and there is significant potential to innovate and evolve product and engage our communities to scale the business even further across activities and internationally. During the months-long interview process, Ms. O’Neill distinguished herself through a rare combination of deep industry, product, and brand experience as well as her strong track record of both transformation and growth at scale. She demonstrated an ability to clearly articulate the lululemon brand’s essence and future opportunity, while also bringing a pragmatic, execution-oriented mindset.

During Ms. O’Neill’s tenure at Nike, she oversaw the global consumer and product engine and helped shape the company’s connection with consumers and athletes worldwide. In her most recent role, Heidi was responsible for resetting the brand foundation while also reducing product development timelines to accelerate speed to market. She also spent over 15 years leading Nike’s apparel – inclusive of its merchandising, design, and innovation businesses – through a period of rapid growth. Ms. O’Neill established and built Nike’s Women’s business and grew it into a multi-billion-dollar franchise. And she led important digital transformations as an early digital champion and innovator, during a period of rapid digital commerce sales growth of more than 65%.ⁱⁱ

Just as important as Ms. O’Neill’s professional skills and operating track record are the deep respect she has for lululemon’s brand and her understanding of our culture. She knows the power of bringing the organization together around our shared mission and values, connecting every function to what makes lululemon special and truly differentiated in the market. She shares our belief that the strongest brands are built through authentic human connection and recognizes the unique relationship we have with our guests and the communities we have built. She believes in lululemon’s focus on mindful performance, empowering our guests to feel their best, perform their best, and reach their goals. She is passionate about wellbeing and sees the opportunity for growth that represents.

We have an outstanding team at lululemon that is already advancing our strategies to strengthen brand health, improve performance, and enhance shareholder value. Ms. O’Neill will have a strong foundation to build upon for a fast start as she accelerates our path forward. She is the right CEO at the right time to deliver on lululemon’s full potential in the near- and long-term.

A Purpose-Built, Refreshed, and Independent Board

with Critical Experience and Skills to Guide lululemon Forward

lululemon’s Board brings together the experience and perspective needed to provide effective oversight as the company works to realize its full potential. Your Board has been thoughtfully and consistently refreshed over time, with six directors – nearly 70% of the current Board, including all three nominees standing for election this year – appointed within the past five years.

Each of lululemon’s directors brings important expertise that has been specifically sought out, taking into consideration the skills and knowledge needed to support the company’s success long into the future. Collectively, your Board’s experience spans product-led innovation, brand building, premium and vertical apparel retail, corporate transformations and turnarounds, finance and accounting leadership, digital and AI strategy and development, and growing a consumer brand in the China market. The directors together bring not only deep knowledge of the consumer, but also leadership experience at scaled global businesses dependent on meaningful innovation, and governance expertise gained through extensive public company board service. Importantly, the Board is working with the leadership team in guiding and supporting the critical actions underway to drive improved performance and shareholder value.

Our three directors up for election – Chip Bergh, Esi Eggleston Bracey, and Teri List – represent the future of the Board. Mr. Bergh and Ms. Eggleston Bracey joined the Board this year, and Ms. List joined in 2024. All three of our nominees have proven track records with executive leadership and public-company Board experience, and bring valuable skillsets relevant to lululemon’s business and vastly superior backgrounds to Mr. Wilson’s nominees:

• Chip Bergh,who joined the Board in March, brings depth and experience as a true brand expert. While President & Chief Executive Officer of Levi Strauss & Co. for over 12 years, he led its dramatic turnaround, putting the brand back at the center of culture, driving profitable growth, and overseeing its successful 2019 IPO. He served in roles of increasing scope and responsibility during his 28-year tenure at Procter & Gamble, including leading the Gillette Blades & Razors business after it was acquired, the turnaround of Mr. Clean and Old Spice, and the development of Swiffer, one of the company’s most successful organic new brands in the last three decades. Mr. Bergh has nearly 20 years of public company board experience, including currently serving as a director for e.l.f. beauty, Pinterest, and HP, where he is independent chairman of the board.
• Esi Eggleston Bracey, who joined the Board in April, brings a proven track record of creative leadership, aspirational brand reinvention, innovation, and operational leadership at scale from her more than 30-year career at global consumer and beauty companies. As Chief Growth and Marketing Officer at Unilever, she oversaw transformation of the $60 billion business’ global marketing operating model. As President of Unilever USA and CEO of Unilever Personal Care in North America, she oversaw a multi-billion-dollar portfolio, including Dove, one of the company’s largest and most iconic brands. Earlier, she modernized and repositioned COVERGIRL into a billion-dollar brand and, as President of Consumer Beauty at Coty, led the integration of Procter & Gamble’s retail beauty brands. She also serves on the board of Williams-Sonoma and sits on its audit and finance committee.
• Teri List, who joined the Board in 2024 and serves as lululemon’s Audit Committee Chair and financial expert, brings over three decades of experience in corporate finance, accounting, and technology. She has served as CFO and senior finance executive at multiple Fortune 500 retail and consumer companies, including The Gap and Kraft Heinz. In Ms. List’s CFO roles, she has helped organizations navigate through market cycles and instilled financial rigor and accountability across teams. In addition, she has led initiatives to drive operational efficiency, strengthen cost discipline, and advance IT capabilities in commerce, analytics, and inventory management. Ms. List also brings nearly 15 years of governance expertise from her board service, including her current director roles with Visa, Microsoft, and Danaher.