An 8-Day Losing Streak Has Lululemon Athletica Stock Down 8.9%
Lululemon Athletica (LULU) stock has fallen for 8 consecutive trading days, losing 8.9% over that stretch. That erased about $1.0 billion from the company’s market value, which now stands at about $10.7 billion. The stock closed at $94.46 on Friday, October 2, its lowest close of the past year.
The Streak Next To The S&P 500
Returns for LULU and the S&P 500 over the streak and the periods around it, all ending Friday, October 2 and including dividends:
| Return Period | LULU | S&P 500 |
|---|---|---|
| 1 Day | -1.5% | 0.7% |
| 8 Days (Current Streak) | -8.9% | -0.5% |
| 1 Month (21 Trading Days) | -21.3% | 0.8% |
| 3 Months (63 Trading Days) | -18.3% | 2.7% |
| Year To Date | -54.5% | 13.8% |
| 1 Year (252 Trading Days) | -46.8% | 16.4% |
A Stock-Specific Slide, Or A Market Move?
Over the same 8 trading days, the S&P 500 returned -0.5% including dividends, so the slide is mostly Lululemon Athletica’s own story rather than the market’s. 2 other S&P 500 stocks are currently on losing streaks of 8 days or longer. Over the past three months the stock is down 18.3%, a window that includes the streak; over the other 55 sessions of that window it was down 10.3%.
Is The Business As Weak As The Stock?
On the fundamentals, revenue grew 1.7% over the last twelve months, against a median of 7.3% for S&P 500 Consumer Discretionary stocks; its operating margin is 17.8%, versus a median of 15.4%; and the stock trades at 7.5 times trailing earnings against a median of 18.4. On these numbers the business looks sturdier than the stock, with margins above the median and a multiple below the median.
If the drop has you weighing an entry, resist buying on price alone. Our Buy the Dip screen ranks the marked-down names where growth and cash generation still hold up.
A Slide Like This Is Why Diversification Exists
Watching one stock fall day after day is the clearest lesson the market teaches about single-name risk. Whether this particular decline is an opportunity or a warning, the deeper point is the same: no one name should be able to do this to your portfolio.
The Trefis High Quality (HQ) Portfolio is built on that principle: roughly 30 businesses selected for consistent cash generation, strong margins, and resilient balance sheets, sized and rebalanced with rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Study the slide; spread the risk.