Why is famed investor Michael Burry going long on Lululemon Athletica (NASDAQ: LULU)? The guy who was one of the inspirations for the book and later the film "The Big Short" says it's because the stock for this upscale athletic apparel retailer and manufacturer has been oversold and is now a bargain, according to recent statements in his newsletter, Cassandra Unchained.
Image source: Getty Images.
Whether he's right largely depends on whether you believe in a good comeback. The maker of luxurious leggings and athletic apparel is apparently getting some pushback among consumers for allegedly being elitist, and sales have been slowing for some time. In a time when many consumers are feeling pressure to tighten their purse strings, discretionary spending on goods made by Lululemon suffers.
Source Fool.com