How Low Can Lululemon Athletica Stock Go In A Market Crash

+26.05%
Upside
159
Market
200
Trefis
LULU: Lululemon Athletica logo
LULU
Lululemon Athletica

Lululemon Athletica has a consistent pattern of underperforming the S&P 500 during major market crashes, with an average decline of 54%. In crises like the Global Financial Crisis, it fell 92% compared to a 57% drop in the S&P 500. Recovery times vary, with Lululemon taking 21 months to regain its value post-Global Financial Crisis, yet it recovered more quickly after the Covid Pandemic (2 months). Typically, Lululemon requires significant time to find a bottom—ranging from 1 to 17 months depending on the crisis—indicating its vulnerability and sensitivity to market downturns, rather than resilience. The most recent Inflation Shock saw Lululemon underperform the S&P 500 by 21%, underlining its historical fragility amid market volatility.

Lululemon Athletica Stock Performance In Market Crashes:

LULU S&P 500
   
Global Financial Crisis    
% Change from Pre-Recession Peak -92% -57%
# of Months for Full Recovery 21 49
   
2018 Correction    
% Change from Pre-Recession Peak -31% -20%
# of Months for Full Recovery 6 4
   
Covid Pandemic    
% Change from Pre-Recession Peak -47% -34%
# of Months for Full Recovery 2 5
   
Inflation Shock    
% Change from Pre-Recession Peak -46% -25%
# of Months for Full Recovery 19 15

Worried that LULU is yet to hit the bottom? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

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