Lululemon: Activist investor reportedly secures one billion dollar stake

An activist investor is believed to have snapped up a stake worth over one billion dollars in Canadian athleisure brand Lululemon.

According to sources for Reuters, Elliott Investment Management has been working with former Ralph Lauren executive Jane Nielsen as it circles the currently unoccupied helm position.

FashionUnited has contacted Lululemon and Elliott Investment Management with a request to comment.

The news comes just days after Lululemon’s long-time chief executive officer, Calvin McDonald, announced his intention to step down from the role by January 31, 2026.

His departure comes amid a period of underperformance, which has led to calls for significant change to leadership, particularly by Lululemon’s founder, Chip Wilson, who said the brand needed an infusion of new skills.

Reuters reported that Elliott, which has now become one of Lululemon’s biggest investors, intends to help revive the ailing retailer, particularly in the wake of an increasingly challenging US business environment.

For the third quarter ended November 2, 2025, net revenue increased across international markets, but declined 2 percent in the Americas. Profitability also dropped, with diluted earnings per share falling from 2.87 dollars in the year prior, to 2.59 dollars.