lululemon athletica inc. (NASDAQ: LULU) is ending Thursday, December 18, 2025 with investors digesting a busy set of headlines that hit within hours of each other: an activist investor reportedly building a $1 billion-plus stake, fresh talk of a potential CEO candidate, a newly announced international expansion plan for 2026, and an SEC filing showing a notable insider sale earlier this week. [1]
After the 4:00 p.m. ET closing bell, LULU was trading modestly lower in the after-hours session compared with its regular-session close (delayed quote). [2]
Below is what happened “after the bell” on 18.12.2025, what drove the move, and what market watchers should keep on their radar before Friday’s open (December 19, 2025).
LULU stock after hours: where shares stand after the closing bell
Lululemon shares finished the regular session around $215 and then eased slightly in after-hours trading, with MarketWatch showing the stock at about $214.33 as of 5:30 p.m. ET (delayed quote). [3]
During Thursday’s session, the stock swung sharply—opening higher and reaching the mid-$220s before fading toward the low-$210s area by the close. Yahoo Finance’s historical tape shows an intraday high near $225.93 and a low around $215.05, alongside heavier volume than the prior day. [4]
The “headline volatility” matters: after-hours pricing can look calm even when the next day’s pre-market and opening auction turns more dramatic—especially when activist investing and CEO succession are involved.
The main catalyst today: Elliott’s reported $1B-plus stake and a CEO succession spotlight
The dominant story moving Lululemon stock on Dec. 18 was the emergence of activist investor Elliott Management as a major new shareholder. Reuters reported that Lululemon shares jumped after news that Elliott had built an investment of around $1 billion and has been working with retail veteran Jane Nielsen as a potential CEO option. [5]
Why the CEO angle matters so much right now
This activist report landed in the middle of an already-sensitive transition:
- Calvin McDonald plans to step down as CEO effective January 31, 2026, according to the company. [6]
- Lululemon said board chair Marti Morfitt would become Executive Chair, and CFO Meghan Frank plus Chief Commercial Officer André Maestrini would serve as interim co-CEOs after McDonald’s transition. [7]
- In the same announcement, Lululemon highlighted that under McDonald, the company more than tripled annual revenue and expects to generate roughly $11 billion in annual revenue this fiscal year. [8]
Today’s coverage framed Elliott’s involvement as investors betting that strategic change could come “sooner rather than later”—a dynamic that can drive fast repricing, even if operational improvements take longer. [9]
Who is Jane Nielsen?
Reuters described Nielsen as a seasoned retail executive with experience at Ralph Lauren and Coach, with a reputation for turnaround work, and noted she sits on the board of Mondelez. [10]
Investopedia likewise reported that Elliott is pushing Nielsen as a CEO candidate, arguing her restructuring background is part of the appeal to investors watching Lululemon’s slowdown. [11]
Context: why activists see “turnaround” potential
Reuters also pointed to why the stock became vulnerable to an activist narrative in the first place: Lululemon’s growth has slowed from its post-pandemic peak, competition has intensified (with brands such as Alo and Vuori frequently cited), and the company has had to adjust expectations this year. [12]
Barron’s characterized the activist stake as a push for leadership and strategic change, noting the stock had been deeply down on the year before the recent bounce around the CEO transition headlines. [13]
Another major headline today: Lululemon plans to enter six new markets in 2026
Separate from the activist news, lululemon also issued a fresh corporate update on international expansion, announcing plans to expand its presence in six new markets in 2026 via franchise agreements—a record number of new entries for the brand in a single year. [14]
According to the company, lululemon plans to launch in:
- Greece, Austria, Poland, Hungary, and Romania (with franchise partner Arion Retail Group)
- India (through a previously announced partnership with Tata CLiQ) [15]
The company said customers across the five European markets will be able to shop online via lululemon’s European site, while customers in India will have digital access through Tata CLiQ Luxury and Tata CLiQ Fashion. [16]
Why this matters for LULU stock into Friday: today’s price action wasn’t only about governance—this expansion news gives bulls a second pillar for the “growth narrative,” especially as the company has emphasized that international momentum has been stronger than the U.S. recently. [17]
A quieter but important filing today: Lululemon Form 4 shows a $2.7M+ insider sale
Alongside the bigger stories, investors also saw a notable insider transaction show up on the SEC tape.
A Form 4 filed with the SEC indicates that Celeste Burgoyne (President, Americas & Global Guest Innovation) sold 13,511 shares in two transactions dated December 16, 2025, at weighted average prices around $203–$204, leaving her with 5,318 shares directly after the reported transactions. [18]
Insider sales can mean many things (tax planning, diversification, pre-scheduled selling, personal liquidity), so markets typically weigh them in context. Still, on days where sentiment is already headline-driven, these filings can become part of the conversation—particularly into the next morning’s pre-market.
What Lululemon last told investors: guidance, buybacks, and the tariff risk sitting in the outlook
To understand how much of today’s move is “story” versus “numbers,” investors often anchor to the company’s most recent financial update and outlook.
In its third-quarter fiscal 2025 results released earlier this month, lululemon reported:
- Revenue up 7% to $2.6 billion
- Americas net revenue down 2% (while international net revenue rose 33%)
- Comparable sales up 1% (Americas comps down; international comps up)
- Gross margin down 290 bps to 55.6%
- Diluted EPS of $2.59 [19]
Guidance investors are still trading around
The company’s outlook (as of that release) included:
- Q4 FY2025 revenue expected at $3.500B to $3.585B; Q4 diluted EPS expected at $4.66 to $4.76
- FY2025 revenue expected at $10.962B to $11.047B; FY2025 diluted EPS expected at $12.92 to $13.02 [20]
Buybacks: an additional support lever
The same release noted that the board approved a $1.0 billion increase to the stock repurchase program, leaving about $1.6 billion remaining authorized as of Dec. 11. [21]
The big “risk line” in the outlook: tariffs and de minimis
One of the most market-relevant details in the outlook is that Lululemon said its FY2025 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. [22]
That line item is important because it connects margin pressure to policy and supply chain variables—factors investors may revisit quickly if activism pushes for operational changes.
Today’s analyst and forecast updates: Jefferies raises target, but “Hold” sentiment remains common
Today’s coverage wasn’t just about headlines—analyst commentary and target changes were also in the mix.
Several market summaries noted Jefferies raising its price target to $200 from $170 while maintaining a “Hold” rating, following reports around Elliott’s position and the leadership transition. [23]
For a broader snapshot, Nasdaq.com (citing Fintel) reported that, as of early December, the average one-year price target for lululemon was roughly $206.85, with a wide forecast range. [24]
How to read this into Friday: the mixed “Hold” tone signals that, even with a powerful brand, the Street still wants proof that product momentum, U.S. demand, and execution can catch up to the narrative boost from activism and CEO change.
What to watch before the market opens tomorrow (Friday, Dec. 19, 2025)
Here’s what typically matters most for a stock like LULU heading into the next session after an activist headline day:
1) Any follow-up headlines from Elliott, Lululemon, or the board
Reuters reported Elliott, lululemon, and Nielsen did not respond to requests for comment in the immediate aftermath. The absence of official statements often keeps speculation alive into the next session. [25]
What could move the stock quickly Friday: confirmation of engagement, board statements about the CEO search process, or additional reporting on Elliott’s plans.
2) Pre-market liquidity and gap behavior
Because Thursday’s move included a sharp intraday fade (open/high much higher than the close), traders often watch whether Friday’s pre-market tries to “re-price” back toward the day’s highs—or whether profit-taking continues. [26]
3) The international growth narrative versus U.S. execution risk
Today’s expansion announcement (six new market entries in 2026) reinforces management’s push to grow outside North America. But the last reported quarter also showed the Americas region under pressure while international regions were stronger. [27]
Friday’s trade may reflect how investors balance those two realities.
4) Insider-trade chatter (and whether it’s treated as “noise”)
The Burgoyne Form 4 will be visible on many terminals and finance sites Friday morning. In isolation it doesn’t dictate fundamentals—but it can add to sentiment-driven debate when a stock is already headline-sensitive. [28]
5) Valuation framing and “turnaround timeline” expectations
Reuters cited Lululemon’s forward valuation relative to peers and described investor hopes that Elliott’s involvement accelerates change—while analysts also warned a turnaround may not be immediate. [29]
In practice, that often leads to higher volatility: short-term optimism trading against longer-term execution questions.
Bottom line for Lululemon stock into Friday’s open
As of after-hours trading on Dec. 18, 2025, Lululemon stock is balancing three simultaneous narratives:
- Activism and governance: Elliott’s reported $1B-plus stake and CEO-candidate discussion (potentially a near-term catalyst). [30]
- Growth initiatives: an official plan to expand into six new markets in 2026 via franchise partnerships (a strategic growth signal). [31]
- Execution and margins: the company’s current guidance and the acknowledged drag from tariffs/de minimis policy assumptions (a fundamental risk factor). [32]
Before the market opens Friday, Dec. 19, the key question for investors is whether additional confirmation or commentary emerges to turn Thursday’s “headline pop” into a more sustained re-rating—or whether the stock remains range-bound as Wall Street waits for tangible operational proof.
References
1. www.reuters.com, 2. www.marketwatch.com, 3. www.marketwatch.com, 4. finance.yahoo.com, 5. www.reuters.com, 6. corporate.lululemon.com, 7. corporate.lululemon.com, 8. corporate.lululemon.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.investopedia.com, 12. www.reuters.com, 13. www.barrons.com, 14. corporate.lululemon.com, 15. corporate.lululemon.com, 16. corporate.lululemon.com, 17. corporate.lululemon.com, 18. www.sec.gov, 19. corporate.lululemon.com, 20. corporate.lululemon.com, 21. corporate.lululemon.com, 22. corporate.lululemon.com, 23. www.marketbeat.com, 24. www.nasdaq.com, 25. www.reuters.com, 26. finance.yahoo.com, 27. corporate.lululemon.com, 28. www.sec.gov, 29. www.reuters.com, 30. www.reuters.com, 31. corporate.lululemon.com, 32. corporate.lululemon.com
