Lululemon Athletica (LULU) investor relations material

Executive summary

• The Wilson Group, led by founder Dennis J. Wilson, is soliciting proxies to elect three independent nominees to the board and to support a proposal to declassify the board, citing concerns over governance, brand erosion, and shareholder value destruction.

• The campaign follows a period of declining financial performance, failed product launches, and CEO turnover, with the Wilson Group attributing these issues to ineffective board oversight and lack of creative leadership.

• The Wilson Group holds approximately 8.6% of outstanding shares and has consistently sought constructive engagement with the board, but claims the board has been unresponsive or offered only incremental changes.

• The Wilson Group's nominees—Laura Gentile, Eric Hirshberg, and Marc Maurer—bring experience in brand building, product innovation, and operational leadership, aiming to restore the company's original vision and competitiveness.

• The proxy solicitation is being conducted independently of the company's management and board, with all expenses borne by Mr. Wilson, and shareholders are urged to vote using the GOLD Universal Proxy Card.

Voting matters and shareholder proposals

• Proposal 1: Election of the Wilson Group's three nominees as Class I directors for a three-year term.

• Proposal 2: Non-binding advisory proposal to declassify the board, moving to annual elections for all directors.

• Proposal 3: Ratification of PricewaterhouseCoopers LLP as independent auditor for fiscal year ending January 31, 2027.

• Proposal 4: Advisory vote on executive compensation (say-on-pay).

• Shareholders may vote for any combination of nominees using the GOLD Universal Proxy Card; voting instructions and revocation procedures are detailed.

Board of directors and corporate governance

• The Wilson Group criticizes the current board for lack of independence, excessive tenure, and overlapping ties to Advent International, which is seen as impeding change.

• The board is currently classified, insulating directors from annual review; the Wilson Group seeks immediate declassification.

• Recent board actions include the unilateral appointment of a new director and the decision of a long-tenured director not to stand for re-election, which the Wilson Group attributes to its campaign.