LULU Stock Rises Overnight: Michael Burry Says Lululemon's Shareholder Base Has 'Completely Turned Over' Ahead Of Earnings

• Michael Burry has supported his bet on Lululemon, saying heavy trading suggests the stock's shareholder base has largely changed. 
• He believes newer investors are less likely to sell, limiting downside. 
• Analysts expect Lululemon to report Q2 revenue of $2.45 billion and earnings of $1.8 per share. 

Lululemon Athletica Inc. (LULU) stock is rising overnight as investors weigh“The Big Short” fame Michael Burry's bullish stance ahead of Thursday's fiscal second-quarter 2026 earnings. Burry says the retailer's shareholder base has“completely turned over,” which could reduce selling pressure. 

Lululemon Athletica stock edged 0.4% higher overnight, ahead of Thursday. The stock is also headed into a second week of decline, down 0.6% so far this week. 

Burry Sees Stronger Shareholder Base For Lululemon 

Michael Burry is leaning further into his Lululemon Athletica bet, telling followers he watches volume signals closely and believes the stock's shareholder base has "completely turned over.”.

“I like volume signals, and they have completely turned over their shareholder base, and newer holders from these levels will be less likely to sell,” Burry said in a chat discussing about the athleisure brand. 

The famed investor's comments strengthen his bullish view of Lululemon. He has called the stock“screaming cheap” even after its shares fell more than 40% this year to seven-year lows. Burry believes most selling is already over and that newer investors are less likely to sell, which could limit further losses before earnings.

LULU makes up roughly 17.4% of Burry's portfolio. He has framed the stock's collapse, from more than $423 in early 2025, as a symptom of temporary mismanagement rather than a broken business. "Bad management is a value investor's best friend. If not for bad management, the world would be more boring, less colorful, and less undervalued," Burry wrote. 

Wall Street Is Less Convinced About Lululemon 

Sell-side analysts aren't sharing Burry's enthusiasm. Last week, Goldman Sachs' Brooke Roach cut her price target for LULU to $111 from $122 while maintaining a 'Neutral' rating, citing the firm's Q2 tracking data, which points to softening card spending, weaker sentiment and traffic, deteriorating consumer metrics, elevated promotional activity, and moderating growth in China.

UBS followed with a similar move, trimming its price target to $120 from $124 and also keeping a 'Neutral' stance. The firm expects Lululemon could cut its fiscal 2026 EPS guidance by roughly $1.25, to a range of $9.70 to $9.90, as weakness in both China and the U.S. weighs on results. 

According to Fiscal Ai data, analysts see a Q2 revenue of $2.45 billion with an earnings of $1.8 per share. 

LULU Stock: Retail Stance

However, on Stocktwits, retail sentiment around LULU stock has improved to 'extremely bullish' territory from 'bullish' the previous day. 

A user said,“More potential to upside than downside, load up LULU for LT[long term].”

LULU stock has cratered over 39% in the last 12 months. 

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