Lululemon Athletica Stock Has Fallen 20%, Time to Enter?
Lululemon Athletica (LULU) stock has fallen by 20.1% in less than a month, from $215.88 on 6th Jan, 2026 to $172.54 now. Should you buy this dip?
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, LULU stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 26% , with median peak return reaching 31%. We define sharp dip as stock going down 30% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
- Pay Less, Gain More: TPR, LULU Top Nike Stock
- Earn 11% Today or Buy LULU 30% Cheaper – It’s a Win-Win
- Is the Market Overlooking Lululemon Athletica Stock’s Next Move?
- Is the Market Overlooking Lululemon Athletica Stock’s Next Move?
- How To Earn 10% Yield While Waiting to Buy LULU 30% Cheaper
- Could You Be Missing Lululemon Athletica Stock’s Upside?
| Period | Past Median Return |
|---|---|
| 1M | 9.0% |
| 3M | 6.2% |
| 6M | -19.1% |
| 12M | 25.9% |
Historical Dip-Wise Details
LULU had 5 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 31% median peak return within 1 year of dip event
- 174 days is the median time to peak return after a dip event
- -25% median max drawdown within 1 year of dip event
| 30 Day Dip | LULU Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | LULU | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 26% | 31% | -25% | 174 | ||||
| 7172025 | -30% | 6% | -23% | 0% | -31% | 0 | ||
| 4032025 | -30% | -12% | -29% | 31% | -37% | 62 | ||
| 5242022 | -30% | -10% | 33% | 50% | 0% | 346 | ||
| 3122020 | -31% | -24% | 81% | 135% | -18% | 174 | ||
| 1152014 | -30% | 3% | 26% | 28% | -25% | 364 | ||
Lululemon Athletica Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 8.8% | Pass |
| Revenue Growth (3-Yr Avg) | 14.2% | Pass |
| Operating Cash Flow Margin (LTM) | 16.8% | Pass |
Not sure if you can take a call on LULU stock? Consider portfolio approach
A Multi Asset Portfolio Gives You Safer Smarter Growth
Stocks soar and sink but bonds commodities and other assets balance the ride. A multi asset portfolio keeps returns steadier and reduces single market risk.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices