Rivals could be cutting in on Lululemon

|About: Lululemon Athletica Inc. (LULU)|By:, SA News Editor

A deceleration of sales at Lulemon (LULU) could have more to do new competition than any hits to the brand from the "too-sheer" pants the company had to recall earlier this year.

Nike, Under Armour, and privately-held Lorna Jane have all become more active in yoga sportswear - while Gap's (GPS) strategy of placing stores nearly on top of Lululemon outlets in malls could also be a factor.

During a recent conference call, Gap CEO Glenn Murphy noted Athelta has a price point of around $79 which undercuts Lululemon by a bit. (transcript)