Lululemon's demand keeps deteriorating, and takeover hopes are a risky reason to hold it. It cut full-year guidance again, with Q2 revenue down 4%, Americas sales down 8% and comparable sales down 9%, sending shares below $100 for the first time since 2019. Michael Burry calls it his largest position and sees a possible private equity takeover, but a Stage 4 decline can last longer than expected, as PayPal holders learned when Stripe chose not to bid. x.com  x.com 

Lululemon is probably going lower because sales and margins are imploding while inventory grows, and a new unproven CEO is coming in. Q3 guidance calls for revenue down 10-11%, North America down mid-teens and inventory up low single digits; full-year revenue should fall 5-7% with inventory up mid single digits. Even granting $6 of annualized EPS versus a ~$4 run rate, 12x for an off-trend retailer implies about $70, versus $100 after an 18% drop. x.com  x.com 

Lululemon is an 800lb gorilla worth defending despite bad management and the politics around its skin-tight leggings. x.com 

Lululemon has let ESG and DEI wokeness destroy the company. It is now one of three stocks not to touch with a ten-foot pole. x.com 

Lululemon is a value trap with no sign its business decline is reversing. Comparable sales in the Americas fell 10% in Q2 2026, worse than Nike's, and management now expects full-year revenue to fall 5-7%, with consensus estimates likely to be cut. Earnings are projected to drop to $1.3 billion by 2028, about 30% below 2025. The trailing P/E of 9x looks cheap, but the forward P/E is higher at 11x as earnings fall, despite the stock losing 75% of its peak value. x.com 

Lululemon is cheap at around 11x earnings with gross margins above 50%, while many people, including the founder, are pushing for a turnaround. Sales growth is tiny, but the balance sheet is solid and the company makes an interesting acquisition target. The reported collapse of talks with founder Chip Wilson, per WSJ via @DeItaone, looks good for the stock: Wilson may try to take it private or bring in a strategic buyer. x.com  x.com 

Lululemon is losing its customer to Alo Yoga, the shiny new brand, while its shareholder base shifts toward value investors. @BillBrewsterTBB notes most women he talks to have gone from fans to lukewarm, while those who like the stock are value-investing men, a mismatch that shows the perils of a shifting shareholder base. x.com 

Lululemon is a classic value trap: EPS guidance fell by a third, so a lower share price is no cheaper, and with EPS likely flat or down for 2-3 years it may need to test the low $80s. Dozens of influencer-led apparel brands selling through Shopify, plus Alo, Vuori and GymShark, offer better products at lower prices without its costly store base. Its mediocre products at premium prices cannot win that fight, and a quick turnaround is unlikely. x.com  x.com  x.com  x.com  x.com 

Lululemon's 18% premarket drop looks like an overreaction given its improving margins. x.com 

Lululemon is not worth bottom-fishing even though the bad news will eventually be priced in, because forward estimates keep falling and a bottom is hard to time before fundamentals bottom. The business is not a zero: its stores are still busy, if less than before. There are better places to look for a bargain. x.com  x.com  x.com