Michael Burry Identifies Lululemon as His Largest Holding Despite Declining Performance
Contrarian investor Michael Burry has labeled Lululemon (NASDAQ: LULU) the 'trickster' in his portfolio due to its persistent underperformance. The stock, now trading at an eight-year low and down more than 17% following disappointing Q2 results, remains Burry's largest position, accounting for roughly 17% of his holdings. Burry initially invested in Lululemon through Scion Asset Management in early 2025. Despite doubling the stake to $17.8 million by September 2025, recent earnings have forced him to revise downward his long-term valuation expectations for the stock. The company reported a global drop of 9% in comparable sales and an 8% revenue decline in its Americas segment. Wall Street analysts are also bearish on Lululemon's prospects, with Morgan Stanley lowering its price target from $93 to $83 while maintaining an 'underweight' rating. Burry has not ruled out a potential buyout scenario as another possible upside path for the stock.
Tickers: $LULU
Topics: Lululemon Michael Burry portfolio changes stock performance