Lululemon has been poised for a comeback. Wells Fargo analysts have said that it has been improving its design, production, and supply chain.
But the company faces steep competition.
Over the past few years, the athleisure market has become incredibly popular. Everyone is trying to cash in on it, from Dick's Sporting Goods to Nike.
And Lululemon still has its troubled history. Customers were furious when founder Chip Wilson commented in 2013 that his pants didn't work for everyone.
These companies could make it harder for Lululemon to hold such a large portion of the market share.
Some companies, like Gap's Athleta and Nike, are huge. Others are more niche brands that can be ordered online.
Under Armour is arguably Lululemon's biggest threat. The company has explicitly said that it wants to focus on growing its women's business. CEO Kevin Plank said that he wanted to make its women's business bigger than its men's, which would make the company usurp Lululemon's stronghold on women's athletic apparel.
Under Armour also has the added benefit of having supermodel Gisele Bundchen and star ballerina Misty Copeland as faces of the brand.