How Low Can Lululemon Athletica Stock Go In A Market Crash
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.