Activist investor Elliott Investment Management has acquired a stake of over $1 billion in Lululemon Athletica Inc. amid the departure of CEO Calvin McDonald. Retail executive Jane Nielsen is being considered as a potential CEO candidate by Elliott, with the stock rising 8.7% in response to the news.

Nielsen, a former executive at Ralph Lauren and Coach, is highly regarded in the industry and has experience leading turnarounds. Lululemon’s growth has slowed, facing stiff competition from new brands like Alo Yoga and Vuori. The company’s shares have dropped 46% this year, with a market value of $24 billion.

Lululemon’s sales growth has been declining, prompting a strategic overhaul. Analysts predict continued slow growth for the Vancouver-based company, with fierce competition from newer athletic-wear brands and knockoffs from lower-priced retailers. Share prices rose 11% after McDonald announced his departure.

Read more at Yahoo Finance: Elliott Said to Build a $1 Billion-Plus Stake in Lululemon