Lululemon Athletica Inc.LULU
▼ NegativeCapitalrelevance
Q2 revenue miss and full-year guidance cut
Impact on stocks 1
Consumer Discretionary
Lululemon Athletica Inc.Michael Burry's Largest Holding Lululemon Plunges 18% After Weak Results
Earnings
Michael Burry's largest holding, Lululemon Athletica Inc., tumbled more than 18% in after-hours trading on Thursday following another disappointing quarterly report, prompting Burry to call the stock "the trickster in my portfolio." In a Substack post, Burry said the athletic apparel maker is his largest position and seems determined to take him "where mermaids fear to tread." Market commentator Sam Badawi noted that Burry plans to buy aggressively below $100 and sees a potential private equity takeover as a long-term outcome. The selloff came after Lululemon reported second-quarter revenue of $2.42 billion, missing the $2.46 billion consensus estimate, and slashed its full-year revenue outlook to $10.35 billion-$10.50 billion from $11 billion-$11.15 billion, while cutting full-year EPS guidance to $9.48-$9.73 from $10.95-$11.15. Weakness in China weighed on results, with China revenue rising just 4% on a reported basis and falling 2% on a constant-currency basis, hurt by negative Chinese media commentary and Tmall's decision not to repeat its 618 Shopping Festival promotion. Interim Co-CEO André Maestrini said the team remains confident in the brand's long-term opportunity in China, while analysts like Gary Black called the decline predictable, citing poor merchandising, product strategy, and leadership gaps.
Lululemon Athletica Inc.Q2 revenue miss and full-year guidance cut