Core Insights - Tapasya Fund achieved a net return of 23.5% in 2025, outperforming the S&P 500's return of 17.9% [1] - The fund's performance was supported by the theme of Artificial Intelligence (AI), which helped the market reach over 38 new all-time highs [1] - The fund aims to avoid sector-specific bubble bursts to mitigate portfolio risks during market downturns [1] Company Analysis: Lululemon Athletica Inc. (NASDAQ:LULU) - Lululemon's one-month return was 3.51%, but it experienced a significant decline of 46.35% over the past 52 weeks, with a market capitalization of $25.161 billion as of January 08, 2026 [2] - The investment thesis for Lululemon is based on its potential for international expansion, particularly in China, despite facing challenges from tariffs and competition [3] - Lululemon's Q3 2025 net revenue rose 7% to $2.6 billion, but it is not among the top 30 most popular stocks among hedge funds, with a decrease in hedge fund holdings from 55 to 42 [4]

Core Viewpoint - Michael Burry's bullish perspective on Lululemon suggests that the company's recent struggles may present a buying opportunity for investors, as he believes the pessimism surrounding the stock is overdone [1][20][24] Company Overview - Founded in 1998 and headquartered in Vancouver, Lululemon designs and markets athletic apparel, footwear, and accessories for both men and women, targeting consumers with active lifestyles [1] - The company has a market capitalization of $24.8 billion and operates globally through various channels, including company-owned stores, outlets, and e-commerce platforms [5] Recent Performance and Challenges - Lululemon's stock has declined over 60% from its all-time high of $516.39 in December 2023, primarily due to softening U.S. demand, product cycle issues, and increased competition [6][12] - The company has faced operational challenges, including management's acknowledgment of stale product lines and the need for improved execution, leading to two cuts in full-year guidance [4][12] - Lululemon is set to exit the Nasdaq 100, which may trigger further selling as index funds rebalance [3] Financial Results - In Q3, Lululemon reported a 7.1% year-over-year revenue increase to $2.57 billion, driven by a 33% surge in international revenues, while net revenues in the Americas fell by 2% [12][18] - Earnings per share (EPS) for Q3 was $2.59, down 9.8% year-over-year, reflecting margin pressures from higher markdowns and tariffs [13] - The company has a strong balance sheet with $1 billion in cash and no debt, and it plans to continue share buybacks [14] Future Outlook - For Q4, Lululemon expects revenues between $3.5 billion and $3.59 billion, with EPS projected at $4.66 to $4.76, indicating near-term margin pressure but a steadier long-term trajectory [18] - The company plans to open 17 net new stores in Q4 and 46 for the full fiscal year 2025, with a focus on international expansion, particularly in China [15][17] Analyst Sentiment - The consensus rating for Lululemon is currently "Hold," with only three out of 30 analysts recommending a "Strong Buy" [22] - Following a recent rally, LULU stock has surpassed the average price target of $205.65, but the highest target of $303 suggests potential upside of nearly 42% [23]

Core Insights - Nike reported fiscal second-quarter results that exceeded analyst expectations for both earnings and revenue, but shares fell over 9% intra-day due to margin pressure and weakness in China [1][2] Financial Performance - Earnings per share were $0.53 on revenue of $12.43 billion for the quarter, surpassing analyst expectations of $0.37 per share on revenue of $12.2 billion [1] - Revenue strength was primarily driven by North America, where sales increased by 9% year over year to $5.6 billion [2] Regional Performance - China sales declined by 17% to $1.42 billion, missing analyst expectations of $1.6 billion, indicating a weak spot for the company [2] Margin Analysis - Gross margin decreased by 300 basis points to 40.6%, impacted by increased promotional activities to clear excess inventory, especially in North America, and higher tariffs that raised input costs [2]

Core Viewpoint - Activist investor Elliott Management has acquired a stake exceeding $1 billion in Lululemon Athletica, indicating a strategic move to influence the company's direction and management [1] Company Summary - Elliott Management is actively seeking a potential CEO candidate to lead Lululemon Athletica, aiming to revitalize the company's performance in the athletic apparel sector [1] Industry Summary - The athletic apparel industry is facing challenges, prompting activist investors like Elliott Management to intervene and push for changes in leadership and strategy to enhance company performance [1]

Core Viewpoint - Investors are showing a bullish stance on Lululemon Athletica, indicated by significant options trading activity, suggesting that there may be upcoming developments that could impact the stock price [1][2]. Options Trading Activity - Benzinga's options scanner identified 29 uncommon options trades for Lululemon Athletica, with a split sentiment among big-money traders: 41% bullish and 41% bearish [2][3]. - The total amount for put options was $1,085,113, while call options totaled $1,437,728, indicating a notable interest in both directions [3]. Price Projections - The analysis of volume and open interest suggests that major players are targeting a price range for Lululemon Athletica between $150.0 and $300.0 over the past quarter [4]. Volume and Open Interest Trends - Insights into volume and open interest are crucial for understanding liquidity and interest levels in Lululemon Athletica's options, particularly within the strike price range of $150.0 to $300.0 over the past month [5]. Largest Options Trades - Significant options trades include: - A call trade with a total price of $460,000 at a strike price of $220.00, expiring on 09/18/26 [9]. - A put trade valued at $363,300 with a strike price of $175.00, expiring on 12/19/25 [9]. - Additional bearish call trades with varying strike prices and sentiments, indicating mixed market expectations [9]. Current Market Status - Lululemon Athletica has a consensus target price of $222.0 from three market experts, with individual ratings reflecting a range of sentiments from Neutral to Buy [12][13]. - Trading volume for Lululemon Athletica stands at 1,808,405, with the stock price at $182.71, showing a slight increase of 0.22% [15].

Core Insights - Investors are showing a bullish sentiment towards Lululemon Athletica, with significant options trading activity indicating potential price movements [1][2][3] Options Trading Activity - A total of 12 uncommon options trades were identified, with 58% of the sentiment being bullish and 33% bearish [2][3] - The total amount for put options was $152,970, while call options totaled $681,144, indicating a stronger interest in calls [3] - Significant investors are targeting a price range of $160.0 to $230.0 for Lululemon over the past three months based on trading activity [4] Volume and Open Interest Trends - The analysis of volume and open interest provides insights into liquidity and investor interest in Lululemon's options, particularly within the $160.0 to $230.0 strike price range over the last 30 days [5] Recent Options Activity - Noteworthy options activity includes various trades with different sentiments and strike prices, such as: - A call option with a strike price of $180.00 totaling $299.5K [9] - A put option with a strike price of $170.00 totaling $66.9K [9] - A put option with a strike price of $175.00 totaling $60.0K [9] Current Market Position - Analysts have issued ratings for Lululemon, with a consensus target price of $222.0, while some analysts have different ratings and target prices, such as $303 from BTIG and $180 from Goldman Sachs [12][13] - The current trading volume for Lululemon is 355,150, with the stock price at $181.56, reflecting a 2.28% increase [15]

Group 1 - Nike Inc's shares have increased by 2%, trading at $65.49, following an upgrade from Wells Fargo to "overweight" with a new price target of $75, up from $60, due to stabilizing sales and improving visibility as part of a strategic turnaround [1] - The stock is on track for its third consecutive daily gain and is currently at its highest level this month, although it remains down 12.8% year to date, indicating a potential recovery sentiment among traders [2] - The Schaeffer's put/call open interest ratio (SOIR) for Nike is at 0.51, placing it in the 1st percentile, suggesting that short-term traders are exhibiting a more bullish outlook than usual [3] Group 2 - Options for Nike appear to be affordable, as indicated by the Schaeffer's Volatility Index (SVI) of 33%, which is in the 16th percentile of annual readings, reflecting a favorable trading environment [3]

Group 1 - Jim Cramer discussed NIKE, Inc. (NYSE:NKE) as part of a broader conversation on stocks related to AI spending and turnarounds [1][2] - Cramer expressed strong enthusiasm for NIKE's CEO Elliott Hill, highlighting his deep understanding of the sports apparel industry and athletic enthusiasm [2][3] - Cramer acknowledged the challenges of NIKE's turnaround but suggested that those not holding the stock might regret it in the future [2][4] Group 2 - Cramer noted that if Elliott Hill can address the issues in China, it would significantly benefit NIKE [4] - The article mentions that while NIKE has potential as an investment, there are AI stocks that may offer higher returns with limited downside risk [5]

Core Insights - Franklin Street Advisors sold its entire position in Lululemon Athletica for an estimated $22.8 million during the third quarter, liquidating 95,891 shares [2][7] - Lululemon's stock price is currently $174.09, reflecting a 36% decline over the past year, significantly underperforming the S&P 500, which has increased by 16% in the same period [3][7] Company Overview - Lululemon Athletica is a leading global retailer in athletic apparel with a strong e-commerce platform, focusing on expanding its omnichannel footprint [6][10] - The company has a market capitalization of $20 billion, with a trailing twelve months (TTM) revenue of $10.9 billion and a net income of $1.8 billion [4] Financial Performance - In its second-quarter 2025 results, Lululemon reported a 7% year-over-year revenue increase to $2.5 billion, driven by a 22% growth in international sales, while sales in the Americas rose only 1% with comparable sales down 4% [8][11] - Operating income fell by 3%, and profit margins contracted by 210 basis points to 20.7% [11] - The company anticipates modest revenue growth of 3% to 4% for the third quarter and has warned that higher tariffs could reduce annual gross profits by approximately $240 million [12] Investor Sentiment - The decision by Franklin Street Advisors to liquidate its position indicates growing investor concerns regarding Lululemon's slowing U.S. growth and declining profitability [7] - The stock's recent pullback may present an opportunity for investors, contingent on management's ability to execute a turnaround and enhance global momentum to counter domestic weaknesses [12]

Core Insights - Diamond Hill Capital's "Select Strategy" reported a positive but underperforming return of 7.31% (net) in Q2 2025 compared to the Russell 3000 Index's 10.99% [1] - The overall market saw a rebound with the Russell 3000 Index rising approximately 11%, driven primarily by large-cap stocks [1] Company Performance - Lululemon Athletica Inc. (NASDAQ:LULU) experienced a one-month return of -10.54% and a 52-week decline of 32.78%, closing at $179.11 per share with a market capitalization of $20.907 billion on September 29, 2025 [2] - The company faced a challenging quarter with slowed sales both in the US and internationally, contributing to its status as a bottom performer in the portfolio [3] Investment Sentiment - Despite recent struggles, Diamond Hill Capital believes Lululemon remains a relevant brand and is trading at an attractive discount to its intrinsic value [3] - Lululemon is not among the top 30 most popular stocks among hedge funds, although the number of hedge funds holding its shares increased from 48 to 55 in the last quarter [4]