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Lululemon Athletica (LULU) hasn’t exactly been the smooth ride investors once enjoyed. The Canadian athletic apparel maker rode the pandemic athleisure boom to record sales, but that momentum has cooled. Today, the story looks very different. Revenue growth has slowed significantly, competition in the premium sportswear category is intensifying, and U.S. consumers are tightening their budgets on discretionary items. Adding to the strain, tariffs introduced by President Donald Trump are weighing on costs, forcing the company to trim its full-year profit outlook.
Amid the turbulence, one surprising buyer has stepped in. Michael Burry, the legendary investor who famously predicted the 2008 housing crash — a move that inspired Hollywood’s “The Big Short” — has decided this beaten-down stock deserves a place in his portfolio. According to Scion Asset Management’s second-quarter 2025 13F filing, Burry scooped up 50,000 shares worth nearly $11.9 million, giving the stock a 2.1% weighting in his portfolio.
