Lululemon Founder, Chip Wilson, Forgoes Billions by Reducing Stake in Yogawear Giant
Chip Wilson, the founder of Lululemon, might be experiencing a sense of regret over the fortune he forfeited by selling shares in the popular apparel retailer. In April 2013, Wilson owned 42 million shares, equivalent to about 29% of Lululemon, with the stock priced at approximately $75.
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Lululemon
At that time, his stake was valued at $3.2 billion. However, Lululemon’s stock has since skyrocketed nearly seven-fold to over $500, propelling the company’s market value to over $60 billion.
Wilson significantly reduced his stake over the years, cutting it to 13% in April 2018 when Lululemon shares were still below $90. Subsequently, he further decreased his holding to the current level of about 10.7 million shares, or 8%, even as the stock more than doubled to around $220.
If Wilson had retained his initial 29% stake, it would now be worth approximately $21 billion. Instead, his remaining position is valued at $5.4 billion.
Forbes estimates Wilson’s current fortune at about $7 billion and suggests that if he had retained all his Lululemon shares, his net worth could surpass $20 billion. Despite missing out on potential wealth, Wilson has made lucrative investments, such as purchasing stakes in companies like Anta, Amer, Arc’teryx, and Wilson’s parent company.
Amer, in particular, has confidentially filed for an IPO at a $10 billion valuation, potentially doubling the value of Wilson’s stake to $2.7 billion.
It’s worth noting that Wilson stepped down from Lululemon’s board in 2013 after making controversial comments. While the stock’s performance may have been influenced by his departure, Wilson’s substantial share sales have left him with a fraction of the potential wealth he could have accumulated.
