Overview
- Lululemon shares rose roughly 6% to 8% in premarket trading to about $221 to $224 after reports of Elliott’s investment and CEO push.
- Sources say Elliott has worked for months with former Ralph Lauren CFO and COO Jane Nielsen, who has indicated she would discuss the job with the board.
- Calvin McDonald is slated to step down on January 31, 2025, following the company’s announcement of a leadership transition last week.
- The stock is down about 45% to 46% this year as sales growth slows and competition intensifies from brands such as Alo Yoga and Vuori.
- Elliott, Lululemon, founder Chip Wilson and Nielsen did not comment to Reuters, and the stake would place Elliott among the retailer’s largest shareholders at a market value near $25 billion.