Lululemon Athletica Inc.’s (NASDAQ: LULU) founder Dennis “Chip” Wilson filed papers with the U.S. Securities and Exchange Commission on Thursday to sell his family’s 14% stake of the company valued at $1.2 billion. The stake, which represents a grand total of 20.1 million shares, include 268,984 shares from his wife Shannon Wilson, 102,328,858 shares and 91,760 shares from Wilson’s entities LIPO Investments and Five Boys Investments.
Dennies Wilson, who founded the Vancouver based yoga-gear retailer in 1988, had stepped down as chairman last May and resigned from the company’s board of directors in February. He is now focusing more on the company founded by his wife and son Kit & Ace.
The stock was down 2.2% to $65.30 during the day after the announcement, but is expected to rally by analysts. Analyst Sam Poser said, “The divestiture finally eliminates Mr. Wilson’s disruptive influence over the company (this is very good news). Any weakness in the stock this morning represents a buying opportunity.”
Lululemon has exceeded its expectations for 12 consecutive quarters, and the revenue was up 10% to $423.5 million and a 31% rise in online sales. The active-wear market is seeing a healthy upside. Lululemon is bullish to grow – stay tune as more details are released regarding Mr. Wilson’s filing.