Michael Burry Sees Acquisition Potential in Lululemon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 02 2026
0mins
Should l Buy LULU?
Source: seekingalpha
Lululemon's stock fell 3.83% and hit a 20-day low amid broader market declines, with the Nasdaq-100 down 0.81% and S&P 500 down 0.79%.
Investor Michael Burry has identified Lululemon as a potential acquisition target, having increased his holdings to 100,000 shares, reflecting confidence in the company's strong financials, including $1 billion in cash. This interest may attract more investor attention despite the recent stock price volatility.
The implications of Burry's interest could lead to increased market activity around Lululemon, as investors reassess the company's future prospects and consider potential buying opportunities.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy LULU?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on LULU
Wall Street analysts forecast LULU stock price to rise
22 Analyst Rating
1 Buy
21 Hold
0 Sell
Hold
Current: 176.170
Low
146.00
Averages
207.12
High
303.00
Current: 176.170
Low
146.00
Averages
207.12
High
303.00
About LULU
lululemon athletica inc. is a technical athletic apparel, footwear, and accessories company. The Company organizes its operations into four regional markets: the Americas, China Mainland, Asia Pacific (APAC), and Europe and the Middle East (EMEA). It conducts its business through a number of different channels in each market, including the Company-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements. The Company offers a comprehensive line of technical athletic apparel, footwear, and accessories marketed under the lululemon brand. Its apparel assortment includes items such as shorts, tops, and jackets designed for a healthy lifestyle, including athletic activities such as yoga, running, training, and most other activities. It also offers apparel designed for being on the move and fitness-inspired accessories. It operates stores in the United States, Canada, China Mainland, Australia, South Korea and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lululemon to Release Q4 and FY2025 Financial Results
- Earnings Release Schedule: Lululemon will announce its Q4 and FY2025 financial results on March 17, 2026, reflecting the company's commitment to financial transparency.
- Conference Call Details: The company will host a conference call at 4:30 PM Eastern Time, requiring participants to dial in 10 minutes early to ensure timely engagement in discussing the financial results.
- Live Webcast Availability: The call will be available via live webcast, allowing global investors to access real-time information, thereby enhancing interaction between the company and its investors.
- Focus on Innovation and Feedback: Lululemon emphasizes innovation in technical athletic apparel and collaborates with athletes in local communities worldwide to continuously improve products, thereby strengthening brand loyalty.
See More
Lululemon Unveils New Sweat-Concealing Technology
- Technology Launch: Lululemon has introduced a new sweat-concealing technology under its ShowZero platform, specifically designed for high-intensity activities, aiming to mask visible perspiration while maintaining a lightweight and breathable feel, enhancing athlete comfort and performance.
- Star Collaboration: The development of this technology involved collaboration with professional tennis player Frances Tiafoe, who will debut a custom Burgundy Bay kit at the BNP Paribas Open, highlighting the brand's close ties with athletes.
- Product Features: ShowZero utilizes specialized yarn technology that eliminates light absorption when wet, making sweat virtually invisible, while also featuring advanced moisture management for quick drying and lightweight construction, ensuring athletes remain focused during intense matches.
- Market Expansion Strategy: This launch follows Lululemon's introduction of the ShowZero golf line in 2024, with the brand serving as the official apparel and footwear outfitter for the BNP Paribas Open, and ShowZero products expected to hit retail shelves later this year, further expanding its presence in the global tennis and lifestyle markets.
See More
lululemon Launches Innovative Sweat-Concealing Fabric
- Fabric Innovation: lululemon athletica has launched the new ShowZero fabric designed for high-sweat activities, utilizing unique yarn technology that makes sweat virtually invisible, enhancing athletes' confidence and focus.
- Technical Advantages: This fabric not only effectively conceals sweat but also features rapid drying capabilities, combining advanced sweat-concealing technology with a feel-first design approach to meet athletes' needs during intense matches.
- Athlete Collaboration: The fabric was developed in collaboration with tennis professional Frances Tiafoe, who will debut the apparel at the BNP Paribas Open from March 1 to March 15, further increasing brand visibility.
- Market Competitiveness: By launching this innovative product, lululemon aims to differentiate itself from competitors and strengthen its leadership position in the athletic apparel market while catering to consumer demand for high-performance gear.
See More
lululemon Launches New Sweat-Concealing Technology
- Technological Innovation: lululemon has launched the ShowZero™ technology in collaboration with tennis player Frances Tiafoe, specifically designed for high-sweat activities, significantly enhancing breathability and moisture management to ensure athlete comfort during intense matches.
- Product Features: The new technology alters how light interacts with the fabric, making sweat virtually invisible while providing a lightweight feel and quick-drying capabilities, catering to athletes' needs on the court.
- Market Expansion: The introduction of ShowZero technology not only enriches lululemon's product line but also provides new solutions for future high-sweat activities, with plans to launch ShowZero products for golf in summer 2024.
- Brand Partnership: lululemon's multi-year partnership with the BNP Paribas Open further solidifies its position in the global tennis market, showcasing its innovative high-performance athletic gear.
See More
On Holding Reports Strong Growth in 2025 Despite Stock Decline
- Strong Sales Performance: On Holding reported fourth-quarter net sales of 743.8 million Swiss francs ($946 million) in 2025, reflecting a 30.6% year-over-year increase and surpassing market expectations of 723.5 million francs, indicating robust performance in the premium athletic footwear market.
- Annual Sales Milestone: For the first time, the company exceeded 3 billion Swiss francs in total sales for 2025, reaching 3.01 billion francs, slightly above the estimated 2.99 billion francs, demonstrating its growing market share in the rapidly expanding sports apparel sector.
- Future Growth Outlook: On expects net sales to grow by at least 23% in 2026, projecting a minimum of 3.44 billion francs, although sell-side analysts had anticipated closer to 3.7 billion francs, reflecting a cautious market sentiment regarding future growth.
- Profitability Improvement: The company achieved an adjusted EBITDA of 131 million Swiss francs, up 31.8%, with an EBITDA margin of 18.8%, exceeding market expectations of 112.4 million francs, showcasing success in operational efficiency and brand positioning.
See More
Chevron and Lululemon Options Trading Activity Surges
- Chevron Options Volume: As of now, Chevron (CVX) options have reached a trading volume of 72,578 contracts, equivalent to approximately 7.3 million shares, which constitutes 64.7% of its average daily trading volume over the past month, indicating heightened market interest in its future performance.
- High Call Option Activity: Within Chevron, the $197.50 strike call option expiring on March 20, 2026, has seen 4,888 contracts traded today, representing about 488,800 underlying shares, suggesting an increased bullish sentiment among investors regarding the stock's upward potential.
- Lululemon Options Activity: Concurrently, Lululemon (LULU) options trading volume stands at 13,717 contracts, representing approximately 1.4 million shares, also accounting for 64.7% of its average daily trading volume over the past month, reflecting active market interest in its stock.
- High Put Option Activity: The $162.50 strike put option for Lululemon, expiring on March 6, 2026, has recorded a trading volume of 1,007 contracts today, representing around 100,700 shares, indicating some investors' concerns about potential downward price movements.
See More
Lululemon to Release Q4 and FY2025 Financial Results
- Earnings Release Schedule: Lululemon will announce its Q4 and FY2025 financial results on March 17, 2026, reflecting the company's commitment to financial transparency.
- Conference Call Details: The company will host a conference call at 4:30 PM Eastern Time, requiring participants to dial in 10 minutes early to ensure timely engagement in discussing the financial results.
- Live Webcast Availability: The call will be available via live webcast, allowing global investors to access real-time information, thereby enhancing interaction between the company and its investors.
- Focus on Innovation and Feedback: Lululemon emphasizes innovation in technical athletic apparel and collaborates with athletes in local communities worldwide to continuously improve products, thereby strengthening brand loyalty.
See More
Lululemon Unveils New Sweat-Concealing Technology
- Technology Launch: Lululemon has introduced a new sweat-concealing technology under its ShowZero platform, specifically designed for high-intensity activities, aiming to mask visible perspiration while maintaining a lightweight and breathable feel, enhancing athlete comfort and performance.
- Star Collaboration: The development of this technology involved collaboration with professional tennis player Frances Tiafoe, who will debut a custom Burgundy Bay kit at the BNP Paribas Open, highlighting the brand's close ties with athletes.
- Product Features: ShowZero utilizes specialized yarn technology that eliminates light absorption when wet, making sweat virtually invisible, while also featuring advanced moisture management for quick drying and lightweight construction, ensuring athletes remain focused during intense matches.
- Market Expansion Strategy: This launch follows Lululemon's introduction of the ShowZero golf line in 2024, with the brand serving as the official apparel and footwear outfitter for the BNP Paribas Open, and ShowZero products expected to hit retail shelves later this year, further expanding its presence in the global tennis and lifestyle markets.
See More
lululemon Launches Innovative Sweat-Concealing Fabric
- Fabric Innovation: lululemon athletica has launched the new ShowZero fabric designed for high-sweat activities, utilizing unique yarn technology that makes sweat virtually invisible, enhancing athletes' confidence and focus.
- Technical Advantages: This fabric not only effectively conceals sweat but also features rapid drying capabilities, combining advanced sweat-concealing technology with a feel-first design approach to meet athletes' needs during intense matches.
- Athlete Collaboration: The fabric was developed in collaboration with tennis professional Frances Tiafoe, who will debut the apparel at the BNP Paribas Open from March 1 to March 15, further increasing brand visibility.
- Market Competitiveness: By launching this innovative product, lululemon aims to differentiate itself from competitors and strengthen its leadership position in the athletic apparel market while catering to consumer demand for high-performance gear.
See More
lululemon Launches New Sweat-Concealing Technology
- Technological Innovation: lululemon has launched the ShowZero™ technology in collaboration with tennis player Frances Tiafoe, specifically designed for high-sweat activities, significantly enhancing breathability and moisture management to ensure athlete comfort during intense matches.
- Product Features: The new technology alters how light interacts with the fabric, making sweat virtually invisible while providing a lightweight feel and quick-drying capabilities, catering to athletes' needs on the court.
- Market Expansion: The introduction of ShowZero technology not only enriches lululemon's product line but also provides new solutions for future high-sweat activities, with plans to launch ShowZero products for golf in summer 2024.
- Brand Partnership: lululemon's multi-year partnership with the BNP Paribas Open further solidifies its position in the global tennis market, showcasing its innovative high-performance athletic gear.
See More
On Holding Reports Strong Growth in 2025 Despite Stock Decline
- Strong Sales Performance: On Holding reported fourth-quarter net sales of 743.8 million Swiss francs ($946 million) in 2025, reflecting a 30.6% year-over-year increase and surpassing market expectations of 723.5 million francs, indicating robust performance in the premium athletic footwear market.
- Annual Sales Milestone: For the first time, the company exceeded 3 billion Swiss francs in total sales for 2025, reaching 3.01 billion francs, slightly above the estimated 2.99 billion francs, demonstrating its growing market share in the rapidly expanding sports apparel sector.
- Future Growth Outlook: On expects net sales to grow by at least 23% in 2026, projecting a minimum of 3.44 billion francs, although sell-side analysts had anticipated closer to 3.7 billion francs, reflecting a cautious market sentiment regarding future growth.
- Profitability Improvement: The company achieved an adjusted EBITDA of 131 million Swiss francs, up 31.8%, with an EBITDA margin of 18.8%, exceeding market expectations of 112.4 million francs, showcasing success in operational efficiency and brand positioning.
See More
Chevron and Lululemon Options Trading Activity Surges
- Chevron Options Volume: As of now, Chevron (CVX) options have reached a trading volume of 72,578 contracts, equivalent to approximately 7.3 million shares, which constitutes 64.7% of its average daily trading volume over the past month, indicating heightened market interest in its future performance.
- High Call Option Activity: Within Chevron, the $197.50 strike call option expiring on March 20, 2026, has seen 4,888 contracts traded today, representing about 488,800 underlying shares, suggesting an increased bullish sentiment among investors regarding the stock's upward potential.
- Lululemon Options Activity: Concurrently, Lululemon (LULU) options trading volume stands at 13,717 contracts, representing approximately 1.4 million shares, also accounting for 64.7% of its average daily trading volume over the past month, reflecting active market interest in its stock.
- High Put Option Activity: The $162.50 strike put option for Lululemon, expiring on March 6, 2026, has recorded a trading volume of 1,007 contracts today, representing around 100,700 shares, indicating some investors' concerns about potential downward price movements.
See More
