Michael Burry Compares Lululemon's Struggles to GameStop's Past Challenges
Michael Burry Sees Echoes Of His 2019 GameStop Bet In Lululemon: 'The Last Time I Owned A Stock As Hated...'

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Investor Michael Burry likens Lululemon Athletica Inc. to GameStop Corp., citing it as the most disliked stock he has owned since 2019. Lululemon's recent earnings report revealed declining sales and profitability, raising concerns about its growth potential amid a tough retail landscape.
- 01Michael Burry stated that Lululemon Athletica Inc. is the most hated stock he has owned since GameStop Corp. in 2019.
- 02Lululemon's first-quarter revenue reached $2.47 billion but fell short of expectations for future earnings and sales.
- 03The company's gross margin decreased by 410 basis points due to rising costs and markdowns, prompting a cut in its fiscal 2026 earnings forecast.
- 04Despite challenges in North America, Lululemon's revenue in Mainland China increased by 30%, highlighting potential growth in that market.
- 05Lululemon shares dropped 8.56% to close at $114.23, marking a 52-week low. The stock's momentum score is in the 2nd percentile.
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Michael Burry, the renowned investor known for his role in the 'Big Short,' has drawn a parallel between Lululemon Athletica Inc. (NASDAQ:LULU) and GameStop Corp. (NYSE:GME), referring to Lululemon as the most disliked stock he has owned since his investment in GameStop in 2019. This comparison comes as Lululemon's shares plummeted following a disappointing earnings report, where despite a revenue of $2.47 billion in the first quarter, the company slashed its full-year outlook and projected sales and earnings below Wall Street's expectations. Management cited a 3% decline in North American revenue and warned of ongoing demand weakness. Additionally, profitability was pressured by a 410 basis point drop in gross margin due to various costs. However, Lululemon's performance in Mainland China, where revenue grew by 30%, remains a positive aspect. Burry's comments suggest he sees a potential disconnect between current investor sentiment and Lululemon's long-term prospects, similar to his previous stance on GameStop. Following the earnings report, Lululemon shares fell 8.56% to close at $114.23, marking a 52-week low.
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Lululemon's declining stock price and reduced earnings outlook may affect investor confidence and consumer perception, impacting sales and market presence.
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