Home Depot Sees 17% Average Crash Loss and Double-Digit Online Growth
HD•Home Depot has historically averaged a -17% drawdown during 15 major market dislocations, with peaks of -37% in 2020 and -31% in 2008, indicating substantial downside in systemic shocks. Its interconnected retail strategy has driven double-digit online sales growth and lifted overall revenues despite a challenged home improvement market.
1. Historical Downside Performance
Home Depot exhibits tight downside capture across market dislocations, averaging a -17% drawdown in 15 major events compared to a -16% drop for the S&P 500, reflecting its vulnerability to systemic crises.
2. 2008 Global Financial Crisis Impact
During the 2008 housing-led downturn, Home Depot shares plunged 31% while the S&P 500 collapsed 53%, highlighting the company's exposure to housing market leverage and its relative resilience versus broader equities.
3. COVID-19 Crash Drawdown
In the 2020 pandemic sell-off, Home Depot stock fell 37%, marginally underperforming the S&P 500's 34% slide, before a rapid V-shaped recovery fueled by unprecedented fiscal stimulus.
4. Interconnected Retail Strategy Outcomes
The retailer’s investment in an interconnected retail model has lifted overall sales and fueled double-digit online growth, helping mitigate risks associated with its extensive brick-and-mortar footprint.
