Burry Stands Firm on Lululemon: 'Screaming Cheap' Despite US Sales Pressure

Michael Burry, a well-known investor and writer, continues to express his bullish view on Lululemon Athletica (LULU) stock. He recently stated that the company's shares are 'screaming cheap' in Substack comments over the weekend.

Burry compared LULU's performance to Apple (AAPL), saying it is 'permacostly' like Costco (COST). He noted that while many investors have become pessimistic about Lululemon, its tangible book value per share has doubled from around $20 to $40 over three years.

Lululemon's U.S. business remains under pressure, with comparable sales falling 5% in the first quarter of this year. However, international revenue increased 22%, helping offset some of the weakness in North America. The company cut its full-year outlook, now expecting revenue of $11 billion to $11.15 billion and EPS guidance at $10.95 to $11.15.

Burry has added to his LULU position, which now accounts for 17.4% of his holdings. He has a history of being correct about the company's value, pointing out that investors have become too pessimistic in the past. His larger long positions include Zoetis (ZTS), MercadoLibre (MELI), JD.com (JD) and Adobe (ADBE).