Key points

  • Michael Burry says he will buy more Lululemon if it trades under $100, calling it "the trickster in my portfolio" in a Substack post after a second guidance cut this year.
  • Lululemon (LULU) fell 17.4% in one session to $100.61 on Friday, its lowest close in more than a year, after quarterly revenue slipped 4% from a year earlier and the company said full-year sales would fall 5% to 7% from fiscal 2025.
  • The stock has lost 51.6% since the start of 2026, and a new chief executive, former Nike president Heidi O'Neill, starts on Monday.

Michael Burry, the investor made famous by "The Big Short," is not walking away from his biggest bet. Hours after Lululemon Athletica reported a weak second quarter and cut its forecast for the second time this year, Burry told readers of his Substack newsletter, Cassandra Unchained, that he would add to the position rather than sell it.

"Today, lululemon (LULU) is the trickster in my portfolio," he wrote. "This time the trickster is my largest position, and it does seem determined to take me where mermaids fear to tread." He added: "I continue to hold lululemon, and I will buy more of it if it trades under $100 tomorrow morning, as it is now after hours. Down about 20% from my last purchase, my rule is to either buy more or sell it."

The stock gave him his chance. Lululemon opened Friday at $98.15, touched $97.99 and closed at $100.61, down 17.4% in one session from Thursday's $121.77.

Burry pointed to the company's $1.3 billion in cash and no financial debt as the cushion while the brand works through its problems. Scion Asset Management deregistered as an investment adviser in November 2025, so there is no 13F to check his position against; it is known only because he describes it.

What Lululemon reported

Revenue fell 4% in the quarter ended August 2 to $2.415 billion, missing the $2.46 billion analysts expected, according to CNBC. Comparable sales dropped 9% from a year earlier, with the Americas down 12% over the same period.

The outlook was the problem. Lululemon now expects fiscal 2026 revenue of $10.35 billion to $10.50 billion, a decline of 5% to 7% from fiscal 2025, against the $11.0 billion to $11.15 billion it guided to in June, and earnings of $9.48 to $9.73 a share, down from $10.95 to $11.15. Third-quarter revenue is forecast at $2.29 billion to $2.32 billion, a drop of 10% to 11% from a year earlier, with earnings of $0.93 to $0.98 a share, less than half what Wall Street had penciled in. Interim co-CEO Meghan Frank said negative social media commentary hurt the quarter and that leggings sales fell 20% in the quarter.

Friday's close leaves the stock 51.6% below where it started the year and 53.4% under its January 6 closing high of $215.88.

What happens next

Heidi O'Neill, a 25-year Nike veteran who most recently ran its consumer, product and brand organization, takes over as chief executive on September 8. She replaces Frank and André Maestrini, interim co-CEOs since Calvin McDonald left in January.

The only open-market purchase by a Lululemon insider in the past year is director Charles Bergh's 4,275 shares at $117.05 on June 15, a $500,384 buy through a family trust that is now about 14% underwater, according to Form 4 filings reviewed by InsiderBuying.com. Lululemon's full Form 4 record and Insider Score are on the Lululemon company page, and Premium members can track real-time insider activity across retail.