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华尔街日报Michael Burry Was Early, Elliott Is Here: What's Next For Lululemon Stock?
Lululemon Athletica, Inc. (NASDAQ:LULU) shares climbed Thursday as Wall Street digested news of activist firm Elliot Management's $1 billion stake in the athleisure clothing retailer.
- LULU stock is climbing. See the chart and price action here.
For months, Lululemon stock was left for dead, plummeting nearly 60% from its all-time highs as it grappled with slowing U.S. growth and a “product newness” crisis.
But the narrative shifted with the arrival of Elliott and the departure of Lulu's CEO.
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Burry's Contrarian Foundation
Michael Burry, the legendary “Big Short” investor, was early to the party.
Through Scion Asset Management, Burry began loading up on LULU in the second quarter of 2025, eventually doubling his position to 100,000 shares by Q3.
Lululemon represented a “window dressing” (due to tax-loss harvesting) opportunity: a fundamentally strong brand being discarded by fund managers eager to hide losers from their year-end reports, according to Burry.
He bet on the valuation gap, noting that at 11x forward earnings, the market was pricing the premium global brand like a zero-growth commodity.
Burry highlighted Elliot's move into Lululemon in a social media post Wednesday night.
"Sounds familiar," Burry said, commenting on The Wall Street Journal story reporting Elliot's stake.
The Catalyst: Elliott's Activist Power Play
While Burry waited for the market to realize its mistake, Elliott Management decided to force the market’s hand. The firm's entry is timed with the upcoming departure of CEO Calvin McDonald in January 2026.
Elliott bought shares and influence, reportedly backing Jane Nielsen (the former Ralph Lauren COO/CFO) to take the helm. Nielsen is a retail pro known for protecting premium margins—exactly what Lululemon needs as it fights off trendier (and cheaper) rivals.
What's Next for LULU?
With a leadership vacuum being filled by activist-backed heavyweights and Burry's high-conviction “long” still in play, the floor for LULU stock has likely been set. Investors should expect:
- A Leadership Premium: The stock surged 6% Thursday on the news, with further gains likely if Nielsen is officially confirmed.
- Margin Recovery: A shift away from de minimis tariff exposure and toward “product-first” innovation.
- The Short Squeeze: With institutional sentiment finally turning bullish, the “Big Long” is officially on.
LULU Price Action: Lululemon shares climbed 6.55% to $221.48 at the time of publication Thursday, according to data from Benzinga Pro.
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