Chip Wilson, the controversial founder of active wear retailer Lululemon Athletica, has sold down his stake in the business for US$845 million (A$910 million).
The billionaire will sell half of his current 27.7% stake of Lululemon to private equity firm Advent International, ending the battle he started earlier in the year over the company’s direction.
Wilson publicly voiced his dissatisfaction with the company’s board by voting against the reappointment of two of his fellow directors in June, according to the New York Times.
The in-fighting began after Lululemon was forced to recall its popular yoga pants, after customers complained they were too sheer. Wilson came under fire after he commented that “some women’s bodies just actually don’t work” for the sheer-style of the yoga pants. He stepped down as chairman after apologising for some of his remarks in December.
Wilson will retain 14% of the company.
JB HiFi share price tumbles on warning of lower tablet sales
Shares in JB HiFi have taken a hit this morning, after the electronics retailer said it expects its results for the first half of the 2015 financial year to be dampened by lower tablet sales.
According to Business Spectator, JB HiFi shares opened 7.85% lower at $17.85 this morning, compared to a lift in the index benchmark of 0.68%.
The hit followed the release of the retailer’s full-year results for the 2014 financial year and its predictions for the year ahead.
JB HiFi recorded full-year net profit of $128.36 million in financial year 2014, a 10.29% increase on the previous reporting period. Revenue in the period was up 5.3% to $3.484 billion, which was in line with the company’s forecasts from May.
However, new chief executive Richard Murray told investors sales for the first half of the 2015 financial year may be slow to take-off.
“We anticipate sales in the first half of fiscal 2015 will continue to be impacted by reduced tablet sales, however we are positive about the pipeline of new products to be released and as a result we expect solid sales growth for the year,” said Murray.
Murray said JB will continue to focus on rolling out its HOME stores, with four new HOME stores planned for 2015 financial year, along with the conversion of 26 existing JB stores.
Shares up on open
Aussie shares have opened higher this morning, as reporting season moves into full swing.
“This week will include the results of index heavyweights CBA and Telstra amongst others,” said Ric Spooner, chief market analyst at CMC Markets.
The S&P/ASX200 benchmark was up 30.6 points to 5465.9 points at 12.10pm AEST. Last week, the Dow Jones closed 185.66 points higher, up 1.13% to 16553.9 points.