The stock of Canada’s Lululemon Athletica (LULU) rose 4% on Dec. 18 as reports surfaced that activist investor Elliott Management has taken a more than $1billion U.S. stake in the retailer.
Media reports say Elliott Management has taken a sizable stake in Lululemon and is putting forward Jane Nielsen, a former chief operating officer (COO) at Ralph Lauren (RL), as a potential new chief executive officer (CEO).
Vancouver-based Lululemon announced earlier in December that current CEO Calvin McDonald will step down on Jan. 31, 2026. The company is actively searching for a new CEO.
Lululemon founder Chip Wilson, who remains the largest individual shareholder in the company, has raised concerns about management and pushed for changes at the athletic apparel retailer.
Wilson has said publicly the CEO search should be led by an independent agent rather than Lululemon’s current board of directors.
Elliott Management has a reputation for taking large positions in struggling businesses and then agitating for change.
LULU stock has declined 42% this year as the company struggles with weak sales and declining foot traffic at its stores. Lululemon’s shares are currently trading at $215.11 U.S. each.
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