Lululemon chairman eyes $220 million share sale

Lululemon Athletica Inc Chairman Dennis "Chip" Wilson is looking to sell up to 3.4 million shares of the yogawear retailer, reducing the stake he controls in the company to 25 percent from 28 percent, according to an SEC filing.

Wilson, who founded Lululemon in 1998 and is its largest voting shareholder, stands to gain some $220 million from the sale, based on the July 3 closing price of $64.50.

Lululemon carved out a lucrative niche with its high-end, fashionable yogawear, but has faced hurdles in recent months, including a brand-damaging recall of excessively see-through pants and tepid sales growth forecasts.

The company is looking for a replacement for Chief Executive Christine Day, who built the brand into an international powerhouse but surprised the market last month with her departure plans.

(Reporting by Julie Gordon; Editing by Janet Guttsman and Gerald E. McCormick)