Lululemon shares crash 80% from peak as founder faces divorce

Lululemon Athletica (LULU) closed Friday at $100.61, a decline of 17.38% on the day. That level is roughly 80% lower than the $511.29 record reached in December 2023. The company's founder is now facing divorce proceedings.

The Nasdaq-traded athletic apparel company has reduced its sales outlook three times in 2026. Just days following the most recent reduction, news emerged that founder Chip Wilson is getting divorced without a prenuptial agreement.

Third sales forecast reduction drives Lululemon to eight-year trough

A guidance represents a company's internal projection of anticipated sales. Lululemon has cut its 2026 outlook from $11.35 billion in March to the current $10.35 billion.

Revenue for the second quarter decreased 4% to $2.4 billion. Same-store sales, which track locations open at least one year, fell 9%.

Profit appeared stronger than the underlying operations. Earnings per share came in at $2.92, boosted by a one-time $134.5 million refund on import duties.

BeInCrypto noted on September 4 that the stock had fallen to eight-year lows. The shares have not rebounded, and Lululemon forecasts a further 10% to 11% decline in third-quarter sales.

Why Chip Wilson's divorce affects Lululemon shareholders

Chip Wilson and his spouse Shannon, known as Summer, filed a family case in British Columbia's Supreme Court in April. The couple has no prenuptial agreement.

Billionaire Lululemon founder Chip Wilson's no-prenup divorce could cost him painful 50-50 split https://t.co/e5GWoYtjBp

— New York Post (@nypost) September 7, 2026

According to a May securities filing, Wilson and related parties own 9.9 million shares, equivalent to 8.7% of the company. That stake was valued at slightly less than $1 billion as of Friday. About 1.1 million of those shares are already assigned to Summer Wilson.

Under British Columbia law, assets each spouse brought into the marriage are protected. Any increase in value during the marriage is typically divided equally. Lululemon's IPO occurred in 2007, five years after the couple married.

In May, Wilson concluded a proxy fight to oust directors, agreeing to take two board seats and an 18-month ceasefire with the board.

Heidi O'Neill commences her role as chief executive this week. She takes over a company with declining sales and a contracting North American market. Wilson's voting power is now tied up in court proceedings.