Lululemon shares up after Elliott Management builds US$1B stake, seeks CEO change
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Article contentTORONTO — Activist investor Elliott Management has built a stake of more than US$1 billion in Lululemon Athletica Inc. and is pushing for the struggling retailer to name former Ralph Lauren executive Jane Nielsen as its next chief executive.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentA source familiar with the situation confirmed media reports that Elliott has been working with Nielsen, a former chief financial officer and chief operating officer at Ralph Lauren, for the past few months to support her candidacy.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentNielsen, who spent nine years at the fashion brand before departing earlier this year, also previously served as executive vice-president and chief financial officer at Coach.Article contentArticle contentThe source said Nielsen’s experience at those two companies makes her well-positioned to turn things around at Lululemon, noting her track record for revitalizing iconic brands.Article contentTop StoriesGet the latest headlines, breaking news and columns.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 Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentElliott attributes Lululemon’s recent struggles partly to increased competition, which has prompted it to offer discounts on more of its products. It also points to the retailer’s increasing pivot to ventures outside its core business.Article contentThat includes recent collaborations with the NFL and Disney, which have seen it release clothing lines featuring football team logos and Mickey Mouse, along with selling more beauty and skin care products.Article contentEarlier this month, Lululemon announced current CEO Calvin McDonald would step down from his role effective Jan. 31, with CFO Meghan Frank and COO Andre Maestrini then serving as interim co-CEOs until the company’s board of directors finds its next leader.Article contentMcDonald had been at the helm of the Vancouver-based company for seven years and will serve as a senior adviser through March 31 of next year.Article contentHe said on an earnings call that Lululemon’s current product mix, particularly in North America, does not reflect the company’s vision for the future.Article contentArticle contentDuring the third quarter, Lululemon said revenue fell in its U.S. and Canadian businesses by three per cent and one per cent, respectively, but saw a 46 per cent rise in its revenue from China.Article contentIn September, while reporting its second-quarter results, Lululemon updated its guidance for 2025 with an estimated reduction in gross profit. It said the move reflected the impact of tariffs and the removal of the de minimis exemption, which had allowed packages worth US$800 or less to ship south of the border without duties.Article contentThe source said Elliott is confident that Nielsen can return Lululemon to its former model as a high-end women’s athleisure brand by focusing on its core customer base.Article contentLululemon founder Chip Wilson, who remains a large shareholder in the company, has also raised concerns about the company and pushed for changes. He has said the CEO search should be led by new, independent directors.Article contentThe source said that while Elliott agrees with Wilson that changes are needed, the investment fund is not working with him on the matter.Article contentLululemon shares were up US$13.48 or about 6.5 per cent at US$221.35 in early-afternoon trading Thursday on the Nasdaq.Article contentThis report by The Canadian Press was first published Dec. 18, 2025.Article contentTrending Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Tax Court overturns CRA decision to deny bitcoin loss writeoff Taxes Posthaste: Here's where home prices plunged the most in tough year for Canada's housing market News Welcome to the K-shaped economy: Canadians look back on a 'brutal,' 'great' year in Trump's trade war Economy Trump official signals support for trade deal with Canada, Mexico Economy 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 Tax Court overturns CRA decision to deny bitcoin loss writeoff Taxes Posthaste: Here's where home prices plunged the most in tough year for Canada's housing market News Welcome to the K-shaped economy: Canadians look back on a 'brutal,' 'great' year in Trump's trade war Economy Trump official signals support for trade deal with Canada, Mexico Economy