Famed "Big Short" investor Michael Burry compared Lululemon Athletica Inc. (NASDAQ:LULU) to GameStop Corp. (NYSE:GME), saying the apparel maker is the most hated stock he has owned since taking a position in the video-game retailer in 2019.

“The last time I owned a stock as hated as $LULU was $GME in 2019,” Burry said in a post on X Sunday, drawing a parallel between the embattled apparel maker and one of Wall Street’s most famous contrarian trades.

Why Investors Have Turned On Lululemon

Shares of Lululemon plunged on Friday after the athleisure apparel maker’s latest earnings gave investors little confidence that a turnaround is imminent.

While first-quarter revenue of $2.47 billion topped estimates, the company slashed its full-year outlook and projected second-quarter sales and earnings well below Wall Street expectations.

Management pointed to ongoing weakness in North America, where revenue fell 3% year over year, and warned that softer demand is likely to persist in the near term.

Profitability also came under pressure, with gross margin shrinking 410 basis points due to tariff-related costs, higher markdowns and fixed-cost deleveraging, prompting the company to cut its fiscal 2026 earnings forecast to $10.95-$11.15 per share from $12.10-$12.30 previously.

The last time I owned a stock as hated as $LULU was $GME in 2019.

— Cassandra Unchained (@michaeljburry) June 7, 2026

Why Burry’s Comparison Matters

For investors, the GameStop comparison evokes a period when Burry was betting on a company that most of the market had written off. When he disclosed a stake in the video-game retailer in 2019, GameStop was widely viewed as a business in decline, with many investors betting against its future.

However, unlike GameStop, which was fighting for relevance in an evolving industry, Lululemon remains a profitable global brand but faces questions about growth, consumer demand, and its ability to sustain premium valuations amid a more challenging retail environment.

Adjusted earnings for the first quarter came in at $1.69 per share, narrowly missing consensus estimates of $1.70 per share.

The comparison hints that Burry, who gained fame for predicting the 2008 housing collapse, may see a disconnect between how investors view Lululemon today and the company’s longer-term prospects.

The Bull Case For Lululemon

One of the clearest bright spots for Lululemon remains China, where revenue in Mainland China increased 30% in the first quarter, making it Lululemon’s fastest-growing major market. Management has pointed to the region as a long-term growth driver, even as demand softens in North America.

For investors, the significance lies less in what Burry said about Lululemon and more in the stock he chose to compare it to.

Price Action: Shares of Lululemon fell 8.56% on Friday to close at $114.23. The stock was trading at a 52-week low.

Benzinga Edge Rankings indicate that LULU has a Momentum score in the 2nd percentile and a Growth score in the 70th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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