When Lululemon launched its trademark yoga pants in 1998, the brand ushered in a “new era of apparel,” according to Retail Dive’s Cara Salpini. “Athleisure” gave everything from dress shirts to denim a stretchy makeover, and the brand saw double-digit sales growth as it expanded to sell workwear and commuter-style products.

Today, this rapid and robust growth has slowed. As Suzy Davidkhanian, head of the retail desk at EMARKETER, explains, any apparel category will struggle if “everything looks the same as last year.” In other words, activewear has not lost its appeal — uninteresting activewear has. At the same time, the entry of additional retailers like Vuori and Fabletics into the market has increased consumer options, in turn raising the innovation bar and stifling Lululemon’s strong initial growth. Traditional apparel brands, including Free People Movement and Offline by Aerie, have also introduced athleisure lines and added to the competition.

Lululemon admitted in September 2025 that it had been missing trends and needed to rethink its design processes. Younger consumers, for example, have shifted from women’s tight-fitting leggings (the company’s core product) to wide-leg jeans. In fact, a recent report by Competitoor found that denim was in high demand, with the price of denim jackets rising 34% in the 12 months ending September 5, 2025. Lululemon remains confident, however, that there is still market share to capture. Along with its athleisure competitors, the retailer is experimenting with category expansion in an attempt to meet evolving consumer preferences.

Vuori now sells denim for $188, and Outdoor Voices has listed cardigans for just under $150. The latter brand is also selling $168 jeans, which it has pitched as a “cowgirl” style designed for equestrians. The product is part of a broader collection that includes $188 riding pants and $108 polos. Alo Yoga has taken the expansion one step further, launching a luxury bag collection in 2025. The brand’s travel duffle is priced at $3,600; a drawstring bucket bag is $2,000.

Despite these efforts, these athleisure retailers have faced a mixed response from consumers. While some customers have praised Outdoor Voices’ equestrian launch and new items like the Diamanté Doing Things Hoodie, others have questioned the cost of the new products, the luxury appeal, and a “loss” of what the brand once was. These frustrations come in addition to complaints about high prices and perceived low-quality of Lululemon and Vuori apparel. Jessica Ramírez, co-founder and managing director of The Consumer Collective, also warns that adapting performance fabrics to different styles can be challenging because the materials do not always sit on the body in the same way.

Taiwanese firms should be aware that athleisure retailers are expanding their product offerings, which may call for a diversified supply chain, with mixed success. If these brands can effectively incorporate consumer feedback into the design process, however, their innovation-mindset appears promising.