Michael Burry Says Lululemon Is His Largest Stock Position, Plans to Buy Below $100

Michael Burry, the investor whose bets against the U.S. housing market were chronicled in The Big Short, is maintaining his bullish stance on Lululemon Athletica despite a sharp decline in the apparel company’s shares.

According to a report published by @coinbureau, Burry said Lululemon is now his largest stock position and that he plans to “AGGRESSIVELY BUY” the shares if they remain below $100. The comments come after Lululemon stock fell below the $100 threshold for the first time since 2018.

The decline followed a weaker-than-expected fiscal second-quarter performance and another reduction to the company’s full-year outlook. Reuters reported that Lululemon shares plunged about 18% after the company’s latest results, leaving the stock down roughly 52% year to date.

Lululemon Faces Weak Sales and Lower Guidance

Lululemon’s latest markets results have intensified concerns about the strength of its brand and demand in key markets. Second-quarter revenue fell 4% to $2.42 billion, while comparable sales declined 9%. The company also reduced its full-year revenue forecast to between $10.35 billion and $10.50 billion, from its previous range of $11 billion to $11.15 billion.

The company is also preparing for a leadership transition. Heidi O'Neill, a former Nike executive, is scheduled to take over as chief executive on September 8. Reuters reported that she will inherit a business facing financial declining sales in its core leggings category, increased competition and pressure to restore product momentum.

For Burry, however, the deterioration in the share price appears to strengthen rather than weaken his investment thesis. His willingness to increase exposure below $100 places the focus on whether Lululemon’s current problems represent a temporary downturn or a deeper erosion of its competitive position.

Burry’s Contrarian Lululemon Thesis Faces a Key Test

The divergence between Burry’s position and broader investor sentiment makes LULU a closely watched contrarian trade. The stock’s valuation has fallen substantially, but lower prices alone do not resolve the company’s underlying sales and brand challenges.

The next major test will be whether Lululemon can stabilize demand under incoming CEO O’Neill and demonstrate improving cryptocurrency performance in its core North American market. Until then, Burry’s planned purchases below $100 remain a high-conviction bet against a deteriorating earnings outlook.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.