One of Michael Burry's top positions needs help

Lululemon just hit its worst drawdown in nearly 20 years, down 77% from its all-time high

Yet Michael Burry just doubled his position to 17% of his portfolio

He called it "screaming cheap" ahead of earnings on September 3rd

Here's what he sees:

• LULU trades under 10x earnings, the only major U.S. clothing retailer that cheap

• Only 2 of 32 analysts give the stock rate a "Buy", which is the same bearish setup right before its 2018 turnaround

• The margin damage is coming from tariffs, not falling demand, down 380 basis points, partly offset by cost cuts

• A new CEO from Nike takes over in September, the same playbook that quadrupled the stock off its 2014 low