Lululemon shares ticked higher again amid reports that activist investor Elliott Investment Management is backing Jane Nielsen as the activewear giant’s potential next CEO
Just days after Lululemon confirmed a leadership transition at the top, attention is turning to what (or, perhaps more importantly, who) could define the activewear brand’s next chapter.
Activist investor Elliott Investment Management has built a more than $1 billion stake in Lululemon and is now emerging as a potential voice in the company’s CEO succession, according to The Wall Street Journal and Reuters.
Reports indicate that Elliott has been working closely with veteran retail executive Jane Nielsen, formerly chief financial officer and chief operating officer at Ralph Lauren, and views her as a potential CEO candidate as Lululemon searches for its next leader.
The news follows Lululemon’s recent announcement that CEO Calvin McDonald will step down in January after seven years in the role, a transition the company disclosed alongside its latest earnings report.
McDonald will remain on as a senior advisor through the end of March while the board conducts a CEO search, with chief financial officer Meghan Frank and chief commercial officer André Maestrini serving as interim co-CEOs.
Following the announcement of McDonald’s upcoming exit, Lululemon shares jumped roughly 12%, signaling investor optimism around a leadership reset.
While the brand more than tripled revenue under McDonald’s leadership and is on track to generate roughly $11 billion this fiscal year, trendier activewear players such as Vuori, Alo and Gymshark have gained momentum. The already crowded category is also now contending with NikeSkims, Nike’s high-profile women’s activewear deal with Kim Kardashian.
For her part, Nielsen brings decades of operational and financial leadership across global consumer brands. According to Mondelez International, where she serves on the board, Nielsen most recently served as chief operating officer of Ralph Lauren from June 2023 through March 2025. She previously held senior leadership roles at the company, including chief financial officer from 2016 to 2019 and chief financial officer and chief operating officer through 2023, after earlier roles as CFO at Coach and senior finance positions at PepsiCo.
Investors appeared to respond positively. As reports surfaced around Nielsen as a potential successor, Lululemon’s stock climbed, with shares up roughly 6–8% on Thursday from Wednesday’s close.
Aside from its impending leadership shuffle, Lululemon continues to press ahead with international expansion. The activewear giant just announced plans to enter six new markets in 2026 (Greece, Austria, Poland, Hungary, Romania and India), marking its largest single-year international push to date.
The expansion will be executed through franchise partnerships, including Arion Retail Group in Europe and Tata CLiQ in India.
