Chip Wilson, the billionaire founder of Lululemon, has filed for divorce from his wife, Summer Wilson, after more than two decades of marriage. The legal proceedings were initiated in the Supreme Court of British Columbia.
Details surrounding the divorce, including property division and any potential settlement, remain private as the court file has been sealed. Reports indicate the couple did not sign a prenuptial agreement, which could complicate the division of their significant assets. Chip Wilson retains approximately 8.6 percent of Lululemon stock, valued around $1 billion, while Summer Wilson reportedly holds about 1 percent.
Summer Wilson played a pivotal role in Lululemon's early success, serving as its founding lead designer and one of its first employees. She was instrumental in developing early designs, including the Groove Pant and logo hoodie, focusing on technical apparel, a specialization she later applied to her own ventures.
Following her success at Lululemon, Summer Wilson, alongside her stepson JJ Wilson, co-founded Kit and Ace, a Canadian luxury apparel company. The brand was built on Qemir, a machine-washable cashmere blend that Lululemon had previously declined. Kit and Ace opened its first store in Vancouver in July 2014, expanding rapidly within a year to the United States and overseas, employing over 700 people at its peak. The company also experimented with incorporating cafes into its retail spaces, mirroring Lululemon's successful model.
Business Complications Arise
The relationship between the Wilson family and Lululemon became strained after Kit and Ace's launch. In February 2015, Chip Wilson resigned from Lululemon's board, citing a desire to work more closely with his wife and son on their new venture. The company had determined that Kit and Ace was in direct competition with Lululemon.
Kit and Ace faced controversy in November 2015 for its use of Asiatic raccoon fur in a product. Additionally, the brand's positioning between luxury and performance wear placed it in a highly competitive market. In response, the company scaled back its international presence, closing stores in the U.S., U.K., and Australia, and concentrating on its Canadian operations and online sales. The Wilson family officially sold Kit and Ace in 2018, though the brand continues to operate.
Lululemon's Current Challenges
The divorce filing occurs as Lululemon navigates a challenging period. The company has experienced declining sales, with a four percent drop to $2.4 billion in the second quarter. Sales at stores open for at least a year fell nine percent, with a more significant decline of 12 percent in the United States. Lululemon has revised its 2026 sales forecast downwards, now anticipating between $10.35 billion and $10.5 billion, a five to seven percent decrease from previous expectations.
The company is also undergoing a leadership change, with incoming CEO Heidi O’Neill set to take over as the company seeks to re-ignite growth. Despite the current slowdown, Lululemon continues to expand its physical footprint, opening nine new locations in the second quarter, bringing its global total to 825 stores.