Michael Burry Buys Lululemon and MercadoLibre as LULU Sits 40% Lower

3 articles · Updated · Yahoo Finance · Aug 10

Scion Asset Management has reportedly taken positions in Lululemon and MercadoLibre, betting on a beaten-down apparel name and a fast-growing Latin American e-commerce platform.
Lululemon shares are down more than 40% this year after Q1 revenue rose just 4%, margins compressed sharply and management cut guidance, even as the stock trades at 10.5 times forward earnings.
China and broader international growth remain the main bullish counterpoints for Lululemon, but tariffs on sourcing hubs including Vietnam and Cambodia threaten to keep pressure on profitability.
MercadoLibre posted 50% Q2 revenue growth to $10.2 billion, its fastest in four years, yet the stock fell 6% after operating margin dropped 550 basis points.
That margin hit reflects MercadoLibre's push to widen free shipping in Brazil and pull customers into Meli+, Mercado Pago and credit products, underscoring Burry's apparent tolerance for near-term profit pressure.