Activist investor Elliott Management acquires $1bn Lululemon stake

US-based Elliott Management has built a involvement exceeding $1bn successful Canadian retailer Lululemon Athletica.

Reuters reports that the activistic capitalist is preparing to propulsion to alteration the company’s CEO.

The hedge money has been moving for months with retail enforcement Jane Nielsen, erstwhile main fiscal serviceman and main operating serviceman of Ralph Lauren.

Elliott Management views her arsenic a imaginable contender for Lululemon’s CEO role.

With its latest investment, Elliott has go 1 of the Canadian athleticwear retailer’s largest shareholders.

The presumption adds to a drawstring of caller moves by the company, which has taken a involvement successful PepsiCo and engaged successful a proxy conflict astatine Phillips 66 during 2025.

Neither Elliott and Lululemon provided a remark to Reuters.

Lululemon announced successful aboriginal December 2024 that CEO Calvin McDonald volition permission his station successful January 2026 aft 7 years, but did not place his successor.

The athleticwear shaper is presently valued astatine astir $25bn.

The lack of a named successor, combined with Elliott’s involvement, raises the imaginable of an extended and perchance costly contention implicit the aboriginal enactment of the company.

Lululemon’s laminitis and largest shareholder, Chip Wilson, has called for a accelerated overhaul of the board’s attack to the CEO search.

In Q3 of fiscal 2025, which ended connected 2 November 2025, Lululemon reported nett gross of $2.6bn, a 7% summation compared with the aforesaid 4th a twelvemonth earlier.

Regional show was uneven, with nett gross successful the Americas falling 2%, portion planetary markets delivered 33% growth.

Gross nett edged up 2% to $1.4bn, though gross borderline contracted by 290 ground points to 55.6%.

Operating income declined 11% to $435.9m, reducing operating borderline to 17%, down 350 ground points.

"Activist capitalist Elliott Management acquires $1bn Lululemon stake" was primitively created and published by Retail Insight Network, a GlobalData owned brand.

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