Elliott Investment Management has taken a stake exceeding $1 billion in Lululemon Athletica and is pressing for a CEO transition, adding urgency to the board’s search for a successor as the company battles slowing U.S. growth and rising competition.
Reports from Reuters and the Wall Street Journal indicate Elliott has become one of the Lululemon’s largest shareholders and is advocating for a swift CEO transition as current chief executive Calvin McDonald prepares to step down on January 31, 2026. McDonald will remain as senior advisor through March to support the handover.
The board has appointed CFO Meghan Frank and Chief Commercial Officer André Maestrini as interim co-CEOs while conducting a comprehensive search for a permanent successor. Elliott is said to be working with Jane Nielsen, a seasoned retail executive and former Ralph Lauren CFO, as a potential candidate. Founder Chip Wilson has also renewed calls for a product-focused strategy and independent board leadership, adding to governance tensions.
Shares jumped nearly 8% on the news on Thursday, reflecting investor optimism that activist involvement could accelerate a turnaround. The move comes as Lululemon faces slowing U.S. sales, margin pressure from tariffs and discounting, and intensifying competition from Alo Yoga, Vuori and private labels. Analysts highlight international expansion—six new markets planned for 2026—as a key growth lever, but warn that restoring U.S. momentum and improving product execution remain critical challenges.
Last updated: 22:05 CET
