Activist investor Elliott Investment Management has acquired a stake exceeding $US1 billion ($1.5 billion) in Lululemon Athletica. The investment comes as the athletic apparel retailer navigates a strategic overhaul following the announcement of its chief executive officer’s departure. Lululemon Athletica is a global company known for its athletic apparel and accessories.
Elliott has reportedly been collaborating with retail executive Jane Nielsen, who previously served as chief financial officer and chief operating officer at Ralph Lauren, for several months regarding Lululemon. Nielsen is considered a potential candidate to replace the current CEO, Calvin McDonald, who is set to step down from his position at the end of January.
The Wall Street Journal initially reported that Nielsen is being viewed by the activist investor as a potential CEO candidate. The company is currently in the process of searching for a suitable replacement for McDonald. The significant stake taken by Elliott signals a potentially influential role for the investment firm in Lululemon’s future direction.
