Elliott Said to Build a $1 Billion-Plus Stake in Lululemon (2)

Activist investor Elliott Investment Management has built a stake of more than $1 billion in Lululemon Athletica Inc., according to a person familiar with the matter, as the struggling retailer faces a strategic overhaul amid its chief executive officer’s exit.

Elliott has been working for months with retail executive Jane Nielsen — a former chief financial officer and chief operating officer at Ralph Lauren — on Lululemon, said the person, who asked to remain unnamed as the matter is private.

The Wall Street Journal, which first reported on the news, said Nielsen is viewed by the activist as a ...