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Dec 4, 2025 4:00 AM

Michael Burry's Pick Lululemon Faces 'De Minimis' Test In Q3: But Bulls Expect 'Retail Bellwether' To Surge By Over 60% In 2 Years

Lululemon Athletica Inc. (NASDAQ:LULU) heads into its third-quarter earnings report as a battleground stock. Recently revealed as a high-conviction contrarian pick by ‘Big Short’ investor Michael Burry—who views the 2025 sell-off as “window dressing”—the company nonetheless faces an immediate financial hurdle.

Check out LULU’s stock price here.

Michael Burry’s Four Picks

Burry, in a post on his Substack on Nov. 27, revealed the four stocks that he currently owns and likes, including LULU.

The ‘De Minimis’ Margin Drag

Management has explicitly warned that the third quarter will be the first to bear the full brunt of new tariff rates and the removal of the “de minimis” duty exemption, posing a severe test for profit margins.

Yet, despite these substantial near-term headwinds, some experts argue this “retail bellwether” is now deeply undervalued and poised to rebound toward $300 over ...