Catenaa, Thursday, December 18, 2025- Activist investor Elliott Investment Management has built a stake of more than $1 billion in Lululemon Athletica, Bloomberg reported.
Quoting sources, Bloomberg said that Elliott has been working for months with retail executive Jane Nielsen, a former Chief Financial Officer and Chief Operating Officer at Ralph Lauren, on Lululemon.
The Wall Street Journal, which first reported on the news, said Nielsen is viewed by the activist as a potential CEO candidate. The company is searching for a replacement for current CEO Calvin McDonald, who will step down from the role at the end of January.
Nielsen is “one of the most well-respected and capable executives in the industry,” Needham analyst Tom Nikic wrote in a note to clients. She has led turnarounds at Ralph Lauren and Coach, and the degree of difficulty that she would face at Lululemon wouldn’t be as high, he said.
Shares of Lululemon rose as high as 8% on Thursday. The stock had rallied about 19% since Friday when the athletic-wear maker boosted its full-year outlook and announced that McDonald would depart.
The Vancouver-based company’s growth has slowed in recent quarters, and that trend is expected to continue, according to analyst estimates.
Sales growth is near the lowest level since the company went public in 2007 as Lululemon faces fierce competition from upstarts, including Alo Yoga and Vuori, as well as knockoffs from lower-priced retailers.
Lululemon’s shares have fallen 38% this year, giving the company a market value of $24 billion.
