Lululemon is an obvious pass despite Michael Burry going long, because it has no moat and is not a game-changing company even if it looks undervalued. The quality of its sector can't compare with tech, health or communications, tariffs make the outcome unpredictable, and the bottom is unclear, putting it in the too-hard pile. x.com 

Brands have no moat, only heat cycles, and Lululemon, at new 8-year lows alongside Nike at 12-year lows, is cooling. People will always buy new clothes to look good, but that requires freshness, and another pair of Lululemons no longer delivers it the way it did in 2020. Winning means spotting which stage a brand is in. 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 is losing customers because it stopped innovating and its brand stance alienated buyers, hurting its own stock as happened with Nike. Shoppers are shifting to Alo, Vuori, Hoka, On and others, and its quality no longer looks as strong. Lululemon shares have fallen to their lowest level in nearly 10 years, per Kalshi. x.com 

Lululemon has no moat, extremely low switching costs and some of the fiercest competition of any sector, so it is not the screaming buy Michael Burry takes it for. The stock is 17.4% of Burry's portfolio, and he often seems more focused on being right as a contrarian than on being right. x.com  x.com 

lululemon looks cheap at about 5x cash earnings, versus the 12x retailers usually get. Fair value sits at $221.42-$281.80, or 12x next year's cash earnings give or take 12%, leaving the $101.30 stock 54% below the low end. This is a levels-only read off reported earnings and revenue estimates, with no fundamental work. x.com 

Lululemon is a stock to avoid around earnings, good or bad, as apparel names almost always are. Too many investors were fooled by its compounder story coming out of Covid. x.com 

Lululemon has lost its way. Its brand and products are good, but its market is saturated. 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 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