Great Canadian success story

In the past decade, Lululemon Athletica Inc. has emerged as a great Canadian success story.

A surfing and snowboarding enthusiast named Dennis “Chip” Wilson founded the business in 1998, inspired by his experience in the first commercial yoga class offered in Vancouver.

Lululemon’s first store opened in Kitsilano, the beach area of Vancouver, in November 2000. It was intended to be a gathering place for people to learn and discuss healthy living. But that concept fell by the wayside as business began to boom thanks to a growing interest in that lifestyle.

Since then, Lululemon has enjoyed great success. Its branded apparel is now sold through 124 stores, most of which are in Canada (45) and the United States (70). Nine franchise stores are located in Australia.

Lululemon became incorporated in November 2005. It announced its first public offering in 2007 and became a public company two years later. On that day, Wilson rang the opening bell on the Nasdaq exchange in New York.

Despite its success, the company has not escaped controversy.

In 2007, The New York Times denounced the company’s claims that the seaweed fibre contained in the fabric of its VitaSea garments released healthy minerals and vitamins into the skin.

Lululemon, at the behest of the Canadian Competition Bureau, agreed to drop all such claims.

Last year, Lululemon released a special edition of clothing that celebrated a “cool sporting event” taking place in British Columbia. The hooded sweatshirts, tuques and T-shirts were introduced just two months before the Winter Games in Vancouver and Whistler, B.C.

VANOC, which has exclusive Canadian marketing rights to Olympic brands from the beginning of 2005 to the end of 2012, criticized Lululemon, saying it expected “better sportsmanship” form the company.

(Lululemon had bid in the past to be the official outfitter of the Canadian Olympic team but lost to Hudson’s Bay Co.)

But that brouhaha didn’t force company executives to lose a step and, odds are, the current controversy won’t either.

Lululemon still has a sterling reputation for selling well-fitting workout clothing that is likely to be worn, not just at the yoga studio, but also at the gym and at home.

The company’s fitness-related accessories, including socks, underwear, instructional yoga DVDs and, yes, even the controversial bags are also hot sellers.

As for Chip Wilson, well, his personal worth has increased by 66.7 in the past year, to $1.25 billion. Not bad for a former surfer dude.