lululemon was founded in 1998 by Chip Wilson in Vancouver, British Columbia and sold its first pair of yoga pants that year.

Wilson created the name to have many L's so that it would sound western to Japanese buyers, who often have difficulty pronouncing the letter.

The company's initial public offering was in July 2007, raising $327.6 million by selling 18.2 million shares. Christine Day, a former co-president of Starbucks, became chief executive officer in 2008.

In 2013, the company made its third consecutive appearance on Fortune's Fastest-Growing Companies list. 

In December 2013, founder Chip Wilson announced his resignation as chairman, and that the president of TOMS Shoes, Laurent Potdevin, would become CEO.

In 2014, lululemon opened its first store in Europe, a flagship shop in Covent Garden, London. In February 2015, 

Wilson announced that he was resigning from the board, and that Michael Casey, former lead director of the board,

 would replace him. In 2018, Laurent Potdevin resigned as CEO and from the company's board due to misconduct.

In 2019, lululemon announced an investment in Mirror, a fitness startup that sells an interactive mirror for at-home workouts.

 The companies planned to create new content for the device, starting with meditation classes.

In April 2020, lululemon CFO Patrick Guido stepped down from the company to assume a leadership position outside of the apparel industry, according to company sources.