LULU Bears Reload — Short Interest Back at Pre-Earnings Peak

Why this matters: lululemon athletica spent last week in a holding pattern after bears banked gains on the September 3 earnings crash. That equilibrium has now broken. Short interest jumped 18.5% in a single day on September 8, pushing back to 11.4% of float — exactly where it stood at the pre-earnings peak. This is not residual positioning. Bears are actively re-entering.

The Short Book Rebuilt Overnight

Yesterday's note described a structural short that had stalled after covering. That stall is over.

Short interest stands at 11.39% of float as of September 8. That is up from 10.7% just one day earlier, and matches the late-August peak that preceded the 17% earnings drop. In one month, the short position has grown 31.5%.

The ORTEX short score reflects the shift. It sat at 50.9 on September 2, drifted sideways through the week, then jumped to 59.5 on September 8 — the highest reading in the visible history. That's a notable acceleration.

Analysts Keep Cutting

The re-entry follows a second wave of analyst reductions. BMO Capital initiated coverage today with an Underperform rating and a $70 price target. That sits 32% below the current price of $103.19.

The post-earnings cuts earlier this week were sweeping. Ten firms lowered their targets on September 4 alone. BNP Paribas slashed from $88 to $44. Piper Sandler went from $110 to $80. Goldman Sachs, Morgan Stanley, and Barclays all reduced targets to the $83–$95 range. The consensus mean now sits at $106.87 — barely above spot, with a cluster of targets well below it.

Borrow Cost Doubles, Availability Tightens Fast

The cost to borrow has doubled in a week. It now stands at 0.51%, up 105% from last Tuesday's level.

More telling is the pace of availability compression. One week ago, availability sat at 655% — roughly 6.5 shares available for every one already borrowed, a loose lending market. As of September 8, it has dropped to 297%. That is still adequate supply, but the direction is sharp and fast. If short interest continues to grow at the current rate, availability will tighten further.

Activist on the Register

Dennis J. Wilson filed a Schedule 13D/A on September 3, disclosing an 8.6% stake — up from 8.4% in his previous filing. As a 13D filer, Wilson is classified as an activist holder. His position represents a structural counterweight to the growing short book. As with all 13D/G disclosures, his stake is as last reported and subject to change without further filing unless he crosses the 5% threshold again.

Data Summary

• Short interest: 11.39% of float (Sep 8), up 18.5% in one day, up 31.5% in one month
• ORTEX short score: 59.5 (Sep 8), up from 50.9 on Sep 2
• Cost to borrow: 0.51%, up 105% week-over-week
• Availability: 297%, down from 655% one week ago — tightening rapidly
• Put-call ratio: 0.74, near the 52-week low of 0.65; options lean bearish but not extreme
• BMO Capital initiation: Underperform, $70 target (Sep 9)
• Stock price: $103.19, down 19.7% over one month
• Next earnings: December 10, 2026