However, Lululemon has a crucial problem, it is still only a yoga company. Whereas Nike and Under Armour have both greatly diversified their business mix away from their original core audience, Lululemon is stuck selling primarily to women and unable to branch out effectively.
Additionally, Nike, Under Armour and even The Gap (GPS) are starting to market specifically towards yoga consumers and beginning to eat into Lululemon's core market share. When added with a management team that seems incapable of stemming the tide, Lululemon appears headed for a drastic slowdown in growth, which is directly reflected in the company's recently lowered guidance and plunging share price.
Click here to read more about why Lululemon is in trouble and the course I think it has to take to remain on a path towards growth. Enjoy!