'Big Short' investor Michael Burry doubles stake in Estée Lauder
Michael Burry's Scion Asset Management has doubled its stake in The Estée Lauder Companies as the beauty giant undergoes a strategic transformation under its new CEO.
The US investor, known for his bet against the housing market before the 2008 financial crisis - famously depicted in The Big Short - has doubled his stake in Estée Lauder to 200,000 shares, valued at $13.2 million, according to Reuters.
This marks a significant increase from the 100,000 shares Scion Asset Management held at the end of December 2024.
"Burry's bet suggests belief in Estée Lauder's ability to reclaim its status as a beauty powerhouse in an increasingly competitive global market," Angeli Gianchandani, a global brand marketing expert at New York University, told the publication.
It comes after the owner of Aveda, MAC Cosmetics and Jo Malone London has experienced a challenging start to 2025.
The US-based company recently reported a 10% decrease in sales to $3.5 billion (£2.6 billion) for the third quarter ending 31 March 2025, but forecasted a return to growth in FY26.
Under a new strategic plan, Estée Lauder is working to restore sustainable growth and profitability, with a goal of becoming "the leading consumer-centric prestige beauty company".
The initiatives are set to be implemented in FY25 and FY26, with completion expected by FY27. As part of this transformation, the company plans to eliminate up to 7,000 jobs globally.
