The Globe and Mail reports in its Thursday, May 28, edition that Lululemon has resolved its proxy fight with founder Chip Wilson, which negatively impacted its shares amid declining brand appeal. A Reuters dispatch to The Globe reports that Lululemon stock has fallen nearly 60 per cent over the past year and about 9 per cent in the last month as competition increased and a leadership transition occurred. The truce announced Wednesday allows incoming chief executive officer Heidi O'Neill to focus on Lululemon's strength: a $1.8 billion (U.S.) cash reserve for investing in new products, revamping retail outlets and entering untapped markets. Morningstar analyst David Swartz says: "Lululemon generates far more cash than it needs to cover its expansion plans. The issue is, what should the investments be?" Lululemon has agreed to give Mr. Wilson two board appointments in exchange for his 18-month confidentiality pledge. Marc Maurer, former co-CEO of On Holding, and Laura Gentile, former chief marketing officer of ESPN, will join the board after the June 25 annual meeting. Oppenheimer analyst Brian Nagel says Lululemon's key challenge is luring back its loyal North American shoppers with revamped products.