Lululemon Stock (LULU) Week Ahead: Elliott Activism, CEO Search, Tariff Headwinds and Holiday-Shortened Trading (Dec. 22

Lululemon athletica inc. (NASDAQ: LULU) heads into the week of December 22 with a rare mix of boardroom drama, activist pressure, and macro catalysts—all set against a holiday-thinned trading calendar that can exaggerate price moves.

The backdrop: lululemon’s leadership transition is now public and time-bound, with CEO Calvin McDonald set to depart on January 31, 2026, and an activist heavyweight—Elliott Investment Management—surfacing with a more-than-$1 billion stake and a preferred CEO candidate. ^[1]

At the same time, lululemon’s latest results show a company still growing, but unevenly: international strength is offset by softer Americas performance and margin pressure, with management explicitly calling out tariffs and the removal of the de minimis exemption as a measurable hit to operating income embedded in guidance. ^[2]

Below is the week-ahead report (as of 21.12.2025), focusing on the latest news, forecasts, and the catalysts most likely to move LULU stock over the coming sessions.

Where Lululemon stock stands heading into the week

Lululemon shares last closed around the $209 area (Dec. 19 close, with after-hours quotes slightly higher), after a volatile stretch that included a sharp pop on leadership news and renewed swings around the Elliott headline. ^[3]

Even after the bounce, the stock’s 2025 story remains one of repair rather than momentum: Barron’s noted LULU is still down roughly 45% year-to-date despite recent gains. ^[4]

That context matters for the week ahead: positioning is fragile, and headlines can move the tape quickly—especially in a low-liquidity holiday week.

The biggest Lululemon headlines investors are pricing right now

1) CEO succession is official—and the interim structure is set

Lululemon says CEO Calvin McDonald will step down effective January 31, 2026, and remain a senior advisor through March 31, 2026. Board chair Marti Morfitt has taken an expanded role as Executive Chair, while CFO Meghan Frank and Chief Commercial Officer André Maestrini are slated to serve as interim co-CEOs following McDonald’s transition. ^[5]

For the coming week, the practical market question isn’t “who is CEO today?”—it’s how quickly the board can reduce uncertainty around the permanent appointment, and whether the process turns contentious.

2) Elliott enters with a $1B+ stake—and a preferred CEO candidate

Reuters reports activist hedge fund Elliott Management has built a stake exceeding $1 billion in lululemon and has been working closely with retail executive Jane Nielsen as a potential CEO candidate. ^[6]

Reuters also described the move as fueling hopes of a quicker turnaround, with LULU shares jumping sharply on the news in recent sessions. ^[7]

Investopedia adds that Elliott is pushing for Nielsen—who has held senior roles at Ralph Lauren and Coach and is currently a board member at Mondelez—framing her as a “turnaround” operator at a moment lululemon is trying to regain momentum in the U.S. ^[8]

3) Chip Wilson remains a wild card

Founder and major shareholder Chip Wilson has criticized the board and the CEO search process, creating a second pole of influence (and a potential source of escalation) alongside Elliott. ^[9]

Why this matters in a week-ahead view: in activist situations, the stock often trades on process signals (board engagement, public letters, candidate leaks, governance changes), not just fundamentals.

4) International expansion story gets a fresh data point

On December 18, lululemon announced plans to expand internationally in 2026 with stores to open in six new markets—Greece, Austria, Poland, Hungary, Romania, and India—through franchise partnership agreements, including Arion Retail Group (Europe) and Tata CLiQ (India). ^[10]

This aligns with what the most recent quarter already showed: international is the engine, and the brand is trying to scale it faster.

Fundamentals snapshot: what lululemon just told the market

Lululemon’s third-quarter fiscal 2025 results (quarter ended Nov. 2, 2025) offered a mixed—but highly “explainable”—picture:

Revenue: up 7% to $2.6B
Comparable sales: up 1% (or 2% constant-currency)
Americas: net revenue down 2%; Americas comparable sales down 5%
International: net revenue up 33%; international comparable sales up 18%
Gross margin:55.6%, down 290 bps
Operating margin:17.0%, down 350 bps
Diluted EPS:$2.59 (vs. $2.87 prior year quarter) ^[11]

Guidance (the numbers investors keep trading around)

For Q4 fiscal 2025, lululemon expects:

Net revenue:$3.500B to $3.585B
Diluted EPS:$4.66 to $4.76 ^[12]

For full-year fiscal 2025, lululemon expects:

Net revenue:$10.962B to $11.047B
Diluted EPS:$12.92 to $13.02 ^[13]

Tariffs and “de minimis” are not abstract risks here

Management explicitly said its 2025 guidance includes an estimated ~$210 million reduction in income from operations, net of mitigation efforts, reflecting assumptions about higher U.S. import tariffs and the removal of the de minimis exemption. ^[14]

That statement is important for the week ahead because it anchors a key debate: Is LULU’s margin reset “temporary and fixable,” or structural?

Buybacks: a real support lever, not just talk

Lululemon repurchased 1.0 million shares in Q3 for $189 million, and the board approved a $1.0 billion increase to its repurchase program. As of Dec. 11, the company had about $1.6 billion remaining authorized. ^[15]

Wall Street forecasts: what analysts are saying now

Aggregated sell-side data shows a Street stance that’s cautious-neutral rather than outright bearish:

Consensus rating: “Hold”
Average price target: about $222.55 (roughly mid–single-digit upside from recent levels)
Range: roughly $175 (low) to $420 (high) ^[16]

Recent notable target moves (December):

Jefferies: maintained Hold; raised target $170 → $200 (Dec. 18)
UBS: maintained Hold; raised $183 → $206 (Dec. 12)
Citi: maintained Hold; raised $190 → $210 (Dec. 12) ^[17]

This “Hold with tweaks higher” pattern matches the current narrative: analysts see a brand with assets (global demand, category leadership), but they also see a turnaround that must be executed—especially in the U.S.—before conviction returns.

Week-ahead catalyst calendar for LULU (Dec. 22–26, 2025)

Expect a quieter tape—and potentially sharper reactions

This is a holiday-shortened week:

Stock markets are closed Thursday (Dec. 25) for Christmas.
Markets close early Wednesday (Dec. 24) at 1:00 p.m. ET (NYSE). ^[18]
Trading resumes Friday (Dec. 26). Reuters notes exchanges are sticking with the planned schedule and will trade a full day on Dec. 26 despite a federal government closure order for Dec. 24 and Dec. 26. ^[19]

Low volume doesn’t mean low risk. In thin conditions, headline-driven names—and LULU qualifies this week—can gap quickly.

Macro data to watch (and why LULU traders should care)

Investopedia’s week-ahead calendar highlights:

Tuesday, Dec. 23: Q3 GDP (initial estimate), durable goods, industrial production, and consumer confidence
Wednesday, Dec. 24:weekly jobless claims (before the early close) ^[20]

Why it matters for lululemon stock:

LULU trades as a premium consumer discretionary name.
Consumer confidence and labor signals can sway sentiment on apparel demand, promotional intensity, and the market’s willingness to pay for “quality growth.”

What could move LULU stock most this week

1) Any new “signal” on the CEO outcome

The board has said it’s conducting a comprehensive CEO search with an executive search firm. ^[21]
But Elliott’s involvement increases the odds of faster news flow, even if a final appointment still takes time.

This week, traders will be listening for:

Whether the company or board acknowledges engagement with Elliott
Any additional reporting about preferred candidates
Any sign the process becomes contested rather than collaborative

2) Activist dynamics: cooperation vs. conflict

Reuters frames the moment as one where investors hope Elliott accelerates a turnaround narrative. ^[22]
At the same time, founder Chip Wilson’s public criticism adds a second pressure channel. ^[23]

In a holiday week, even a brief headline—“talks progressing” vs. “proxy fight brewing”—can matter more than usual.

3) Holiday selling, promotions, and the “brand heat” question

Management said it was encouraged by early holiday performance. ^[24]
But investors remain focused on whether lululemon can restore momentum in the U.S. while fending off brands Reuters called out as “trendier upstarts,” including Alo and Vuori. ^[25]

4) Tariffs remain an earnings-quality issue

Lululemon’s explicit estimate of a ~$210M operating income reduction tied to tariff/de minimis assumptions keeps trade policy and import cost dynamics firmly in the frame. ^[26]

That doesn’t change day-to-day—but it can change how markets interpret any incremental good or bad news (because margins are already under scrutiny).

Scenario outlook for the week ahead

Bullish setup

LULU could strengthen if:

CEO-search headlines suggest the board is moving decisively (or aligning with activist expectations)
Macro data (confidence/labor) supports the “consumer is stable” narrative
No new negative product/promotional commentary surfaces—letting the recent rebound breathe

Supportive structural factors include:

The company’s buyback capacity (authorization remaining) ^[27]
The visible runway in international expansion ^[28]

Bearish setup

Downside pressure can re-emerge if:

The CEO process looks like it’s drifting or turning adversarial
Macro prints revive concerns that consumers are pulling back
Investors refocus on the fundamental split: Americas weakness vs. international strength and persistent margin compression ^[29]

In a thin week, the bearish case is often less about new data and more about fragile confidence—a “risk-off” day can hit discretionary names harder than fundamentals would justify.

Bottom line: Lululemon stock is likely to trade on headlines—more than fundamentals—this week

For the week of Dec. 22–26, 2025, lululemon stock sits at the intersection of:

A formal CEO transition timeline ^[30]
A high-profile activist investor pushing for a specific direction ^[31]
Clear guidance that embeds tariff-related profit pressure ^[32]
A holiday-shortened market where liquidity can be thin and reactions can be sharp ^[33]

References

Lululemon Stock (LULU) Week Ahead: Elliott Activism, CEO Search, Tariff Headwinds and Holiday-Shortened Trading (Dec. 22–26, 2025)