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Monday, June 23, 2014

Lululemon shares rise as founder turns to Goldman for shake-up, (NASDAQ: LULU)

Shares of Lululemon Athletica Inc rose on Monday after reports that founder Dennis "Chip" Wilson was considering options and pushing for changes at the yogawear retailer following an extended share slump. Lululemon's typically volatile stock rose 3 percent to $41.45 but remained below its close on June 11, just before the company cut financial forecasts and warned that second-quarter sales were off to a weak start.Wilson is building a team of advisers that will likely include Goldman Sachs, a source familiar with the situation told Reuters on Sunday. The Wall Street Journal said Wilson could launch a proxy fight or team up with a private equity firm in a buyout.The source told Reuters that Wilson is looking at all options but has not determined his course of action, adding that Wilson's decision is unlikely for at least another couple weeks.Vancouver-based Lululemon's reputation for selling top-quality, trendy yoga and running clothes was tarnished last year when it recalled stretchy pants because they were partially transparent.

lululemon athletica inc. is a designer and retailer of technical athletic apparel operating primarily in North America and Australia. Shares of LULU traded higher by 4.22% or $1.6982/share to $41.93. In the past year, the shares have traded as low as $36.26 and as high as $77.75. On average, 3885420 shares of LULU exchange hands on a given day and today's volume is recorded at 1136265.