NEW YORK (TheStreet) -- Lululemon (LULU) stock is slipping on Wednesday after its founder and 27% shareholder initiated a war of words with the board. Founder Chip Wilson said in a statement that he had voted against the re-election of board members Michael Casey and RoAnn Costin, arguing the board is not "aligned with the core values of product and innovation on which Lululemon was founded."
In response, Lululemon issued its own statement, rebutting that board members are "aligned with the company's core values and possess the necessary expertise to successfully lead Lululemon forward.
The battle lines have been drawn. By midafternoon, shares of the athletic apparel company had fallen 2.7% to $44.26.
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Separately, TheStreet Ratings team rates LULULEMON ATHLETICA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate LULULEMON ATHLETICA INC (LULU) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."