Lululemon athletica inc.'s founder and Chairman Dennis J. Wilson has indicated through regulatory filings an intention to transfer or otherwise sell, through his control of LIPO Investments USA, Inc., approximately 330,000 shares of lululemon common stock.
In accordance with the LIPO USA Option Plan created prior to LULU's initial public offering, Mr. Wilson will transfer shares of lululemon common stock to certain founding employees of the company upon the exercise of awards. The shares of lululemon common stock transferred by LIPO USA to the employees will be restricted from sale for a period of six months. In connection with such transfers, LIPO USA will sell a number of shares on the open market to satisfy tax and withholding obligations. Further details of the stockholder-sponsored plan are provided in note 11-Stock-Based Compensation in the company's 2007 Annual Report on Form 10-K. Additional transfers will continue periodically until all obligations under the LIPO USA option plan are fulfilled.
“This transfer of shares is a continuation of the one that occurred last quarter,” said Wilson. “The execution of this transfer will allow this group of founding employees to continue to monetize their ownership over time.”