Activist investor Elliott builds over $1 billion stake in Lululemon, puts forth CEO candidate
The activist investor is bringing a CEO candidate to the struggling retailer after it announced last week Calvin McDonald would step down in January.
TL;DR
- Elliott Investment Management has acquired a stake of over $1 billion in Lululemon Athletica.
- Elliott is reportedly proposing former Ralph Lauren CFO and COO Jane Nielsen as a potential CEO candidate.
- Lululemon's current CEO, Calvin McDonald, is set to step down on January 31st.
- The company's stock saw a 6% increase following the news.
- Founder Chip Wilson has been critical of the company's performance, calling it a 'nosedive'.
- Lululemon faces increased competition from athleisure brands such as Vuori and Alo Yoga.
- Elliott has also recently taken stakes in Workday and PepsiCo.