It is not often that you find a company that is achieving success while having an average or mediocre board of directors. And that is the reason why we are focusing on the lululemon board of directors today. It is not because we want to single them out for criticism. In fact, it is quite the opposite. Lululemon is one of those companies that seems to keep performing so well on an annual basis, and we have to attribute a great deal of success to their board of directors. They have an excellent vision for the company, and they are seeing it fulfilled on a daily basis.
When the company was founded in the late 1990s by Chip Wilson, we have to say that the idea of it being a $100 billion company was something that no one could have anticipated. But they have really taken all the trends that you see in the West Coast regarding athletic wear and they have transformed those trends into a unique brand that is so powerful around the world. When you talk about apparel for doing yoga, skiing or swimming, it is often Lululemon items you are going to buy.
So the fact remains that the company still needs to continue to grow and evolve, and that is why their board is so impressive. They have not sat on their laurels. Even though Chip Wilson still plays a role, he is more of a majority shareholder than a decision maker these days. So it has been up to the rest of the board and the company’s management structure to ensure the vision of Wilson is always followed. They have most definitely been moving the company in the right direction in the past few years, and it will be interesting to see where they go from here!