{
  "id": 5916158,
  "title": "Jim Cramer Left Intrigued By Lululemon Athletica Inc. (NASDAQ:LULU)’s “Self Destruction”",
  "url": "https://urgent.news/2026/09/04/jim-cramer-left-intrigued-by-lululemon-athletica-inc-nasdaq-lulu-s",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-04T22:46:41.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/jim-cramer-left-intrigued-lululemon-224641108.html"
  },
  "original_language": "en",
  "account": "On the 4th, shares of athletic apparel retailer Lululemon Athletica Inc. (NASDAQ:LULU) experienced a significant decline, closing 17.4% lower after reporting its second quarter earnings. The company's revenue of $2.42 billion marked a 4% annual decrease, falling short of analyst estimates of $2.46 billion. Additionally, comparable sales dropped by 9%, a concerning trend for retail stocks. Jim Cramer expressed intrigue and concern over Lululemon Athletica Inc. (NASDAQ:LULU) as a case study in mismanagement, highlighting the disappointing revenue and comparable same store sales figures. The Americas business, which constitutes 66.9% of the company's revenue, saw a 12% drop in comparable same store sales due to an 8% revenue decline. US revenue dropped by 8%, while Canada revenue decreased by 11%. Despite a 4% growth in International revenue, it could not offset the overall weakness. Lululemon Athletica Inc. (NASDAQ:LULU) also managed to expand its gross margin primarily through tariff refunds. Contrarian investor Michael Burry, however, has a different perspective on the company. He believes that Lululemon Athletica Inc. (NASDAQ:LULU) has a strong balance sheet, with little long-term debt and a healthy cash position, making it resilient against stress. Burry even stated that he might consider buying the stock if it fell below $100 and dubbed it a \"fat pitch\" - a deeply discounted stock with favorable safety margins. The second quarter performance of Lululemon Athletica Inc. (NASDAQ:LULU) led to a notable decrease in holdings by hedge funds, with 51 out of 1,006 funds tracked by Insider Monkey divesting their positions, a decline from 61 out of 1,022 funds in Q1. Notable exits included Arrowstreet Capital and Point72 Asset Management. In terms of valuation, Lululemon Athletica Inc. (NASDAQ:LULU) trades at a forward P/E ratio of 10.6, which is lower than its peer Nike with a ratio of 22.22.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}