NEW YORK (TheStreet) -- Shares of Lululemon Athletica Inc (LULU) are slipping, down 3.7% to $64.30 in pre-market trading Thursday, after the company filed for founder Chip Wilson to sell his entire stake in the yoga wear maker, according to The Wall Street Journal.
Wilson and his family may sell their entire 20.1 million shares, which is a 14% stake in the company worth about $1.2 billion, the Journal added.
Wilson and Lululemon had been at odds for more than a year over his involvement in a casual clothing chain, Kit & Ace. Kit & Ace, which resembles Lululemon, was launched by Wilson's wife and son, the Journal noted.
Canada-based Lululemon Athletica offers a range of yoga-inspired performance apparel and accessories for women, men and female youth such as fitness pants, shorts, tops and jackets, which are designed for healthy lifestyle activities.
Separately, TheStreet Ratings team rates LULULEMON ATHLETICA INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LULULEMON ATHLETICA INC (LULU) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, notable return on equity, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."