Michael Burry declared Lululemon Athletica Inc. (LULU) his portfolio's "trickster" and pledged to buy more shares if they fall below $100, staying committed to his largest holding after an 18 percent overnight selloff triggered by disappointing fiscal second-quarter earnings.
"Today, lululemon (LULU) is the trickster in my portfolio," Burry said. "This time the trickster is my largest position, and it does seem determined to take me where mermaids fear to tread."
Lululemon reported a 4 percent drop in Q2 revenue to $2.42 billion, with comparable sales declining 9 percent. The company slashed its full-year outlook, now projecting 2026 sales to fall between 5 percent and 7 percent, citing weak North American demand and inconsistent customer response to product launches.
Burry had publicly warned of a weak quarter before earnings landed. His rule is straightforward after a sharp decline: either buy more or sell. He is choosing to buy, viewing the selloff as excessive.
Despite the 40 percent year-to-date drop, Burry pointed to his track record weathering major downturns. He bought Avanti at $12 in 2001, watched it sink to $2, continued accumulating shares, and exited when the company was acquired at $22. Adobe (ADBE), Molina Healthcare (MOH), and Veeva Systems (VEEV) similarly recovered after steep declines, he noted.
Burry emphasized his approach remains unchanged. "The stock market can be a wild ride," he said. "I speak often of patience. But patience does not win the rodeo. Too often, it is all about the grip, that hold."
Lululemon now represents 17.4 percent of Burry's portfolio. LULU traded more than 18 percent lower in overnight trading after closing up 1.4 percent in the regular session.
