Lululemon Athletica Inc. (NASDAQ:LULU) shares are trading higher on Thursday after Elliott Investment Management reportedly took a $1 billion+ stake in the company and is pushing for a new CEO to steer the retailer through recent challenges.
Elliott would now be one of the largest investors in the company, which has a market value of about $25 billion.
International Expansion
Lululemon also announced Thursday its plan to expand internationally in 2026 with six new market entries via its franchise partnership model.
This is the brand’s record number in a single year.
Also Read: Lululemon Tops Estimates As Q4 Growth Cools, Analysts Say
The company will enter Greece, Austria, Poland, Hungary, and Romania with Arion Retail Group, alongside its previously announced India launch with Tata CLiQ.
This brings its athletic and lifestyle apparel to new customers across Europe and the Asia Pacific.
The upcoming launches mark another milestone in Lululemon’s global expansion, building on its entry into Italy this summer and recent franchise openings in Denmark, Turkey, and Belgium.
The company will continue preparations into next year, with store locations, launch timelines, and community activations to be announced in 2026.
Recent Performance
This month, Lululemon reported third-quarter earnings per share of $2.59, surpassing analyst estimates of $2.27 by over 14%. Revenue climbed to $2.57 billion, beating the Street’s $2.48 billion forecast.
The company announced that Calvin McDonald plans to step down as CEO, effective Jan. 31, 2026. CFO Meghan Frank and CCO André Maestrini will serve as interim co-CEOs while the board looks for a successor.
LULU Price Action: Lululemon Athletica shares were up 5.97% at $220.28 at the time of publication on Thursday, according to Benzinga Pro data.
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