LULU Stock Sinks 18% Overnight: Michael Burry Says Lululemon Is A ‘Trickster’ As He Vows To Buy More Under $100

• Michael Burry has called Lululemon Athletica his portfolio’s “trickster.” 
• Burry cited past winners to show why he remains patient with Lululemon. 
• Burry expected weak results but remains bullish, saying he will buy more Lululemon if shares continue below $100 rather than sell. 

Lululemon Athletica Inc. (LULU) stock plunged 18% overnight after the athletic-apparel retailer’s fiscal second-quarter (Q2) earnings disappointed investors, putting pressure on Michael Burry’s biggest portfolio holding. Despite the sharp selloff, the famed investor called Lululemon a “trickster” and said he plans to buy more if shares continue to trade below $100.

Lululemon Athletica stock traded over 18% lower overnight, after closing 1.4% higher in the regular session. Despite the weakness, the stock has seen gains over the past three months. 

Burry’s Lululemon Bet Takes Another Hit 

Michael Burry is sticking with his Lululemon bet despite another painful decline. Lululemon has become the investor’s largest holding, but Burry acknowledged in his Substack post that the position has once again tested his patience following the company’s Q2 earnings report.

“Today, lululemon (LULU) is the trickster in my portfolio. This time the trickster is my largest position, and it does seem determined to take me where mermaids fear to tread.”

Burry noted that some of his biggest investments have previously suffered steep losses before eventually recovering. He pointed to Avanti as an example, recalling how he bought the stock at $12 in 2001, watched it sink into the $2 range and continued purchasing shares before the company was acquired for $22 a share.

Burry said his approach has not fundamentally changed, citing other investments such as Adobe (ADBE), Molina Healthcare (MOH) and Veeva Systems (VEEV) that endured major declines before rebounding.

“The stock market can be a wild ride. I speak often of patience. But patience does not win the rodeo. Too often, it is all about the grip, that hold.”

Burry’s Conviction On Lululemon Stays Unchanged 

Burry said he anticipated a weak quarter for Lululemon before the earnings release and had warned about that possibility several times through his investment commentary.

“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.”

Burry had been calling LULU stock very cheap despite its over 40% drop this year. LULU makes up about 17.4% of his portfolio. Lululemon’s Q2 revenue dropped 4% to $2.42 billion and comparable sales declined 9%. The company also lowered its full-year outlook, citing weak North American demand, with 2026 sales now expected to fall 5%-7%. 

“As we move into Q3, while we are seeing good guest reaction to our activations and some of our newer styles, the overall response to our product launches remains inconsistent. And we've continued to see pressure on the brand in both of our largest markets,” said Meghan Frank, Interim Co-CEO and CFO of Lululemon during the earnngs call. 

LULU stock: Retail View 

On Stocktwits, retail sentiment around the stock plunged to ‘bearish’ from ‘extremely bullish’ territory the previous day. The stock saw over 3,000% jump in message volume over the past week with a 1.2% gain in watchers. 

A user said, “Lulu is down everyone jump to conclusions that economy is bad.  Abercrombie said otherwise. Nobody is buying Lulu anymore.”

Another user said, “I used to love Lululemon, it is literally all the gym clothing I have. The quality has gone down big time.  They are getting what they deserve as a company.”

LULU stock has crashed 38% in the past twelve months. 

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