Michael Burry Likes Lululemon Stock. But the Math Only Works If Sales Stop Shrinking.
He sees 15% to 20% annual returns ahead for the struggling athleisure brand. The math only holds if the shrinking stops.
Overview
Lululemon Athletica (NASDAQ:LULU) stock closed at $96.88 on Thursday, touching a fresh 52-week low during the session. Shares now trade below $100 for the first time in more than eight years.
The latest leg down came after the athletic-apparel retailer cut its full-year outlook for the second time this year alongside last week's earnings report. Together, they sent the stock down 17% in a day.
Details
Michael Burry sees an opportunity. The famed investor wrote on Substack the evening the report landed that Lululemon is now the largest position in his portfolio.
Source
Originally published at www.fool.com.
Related Articles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.