Elliott said to build a US$1 billion-plus stake in Lululemon
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Lululemon store at Burrard and Robson Streets in downtown Vancouver, B.C. on December 13, 2023. Photo by Jason Payne/ PNGArticle contentActivist investor Elliott Investment Management has built a stake of more than US$1 billion in Lululemon Athletica Inc., according to a person familiar with the matter, as the struggling retailer faces a strategic overhaul amid its chief executive officer’s exit.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentElliott has been working for months with retail executive Jane Nielsen — a former chief financial officer and chief operating officer at Ralph Lauren — on Lululemon, said the person, who asked to remain unnamed as the matter is private.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentThe Wall Street Journal, which first reported on the news, said Nielsen is viewed by the activist as a potential chief executive candidate. The company is searching for a replacement for current chief executive Calvin McDonald, who will step down from the role at the end of January.Article contentInvestorCanada's best source for investing news, analysis and insight.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentA representative for Elliott declined to comment. Lululemon didn’t immediately respond to a request for comment.Article contentShares of Lululemon rose more than five per cent in early trading before the market opens in New York. The stock has rallied, rising about 11 per cent, since Friday when the athletic-wear maker boosted its full-year outlook and announced that McDonald would depart.Article contentThe 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.Article contentLululemon’s shares have fallen 46 per cent this year, giving the company a market value of US$24 billion.Article contentBloomberg.comArticle contentTrending Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Welcome to the K-shaped economy: Canadians look back on a 'brutal,' 'great' year in Trump's trade war Economy Posthaste: Here's where home prices plunged the most in tough year for Canada's housing market News Trump official signals support for trade deal with Canada, Mexico Economy World watches as Ottawa's bullish shift on LNG puts wind at the back of two major projects Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Welcome to the K-shaped economy: Canadians look back on a 'brutal,' 'great' year in Trump's trade war Economy Posthaste: Here's where home prices plunged the most in tough year for Canada's housing market News Trump official signals support for trade deal with Canada, Mexico Economy World watches as Ottawa's bullish shift on LNG puts wind at the back of two major projects Oil & Gas