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Is Denim Still a Threat to Lululemon?

Leggings might not be enough to save Lululemon from denim’s impending takeover, according to a Barrons report.

“The new trends in denim suggest the triangle is turning right side up (tight tops paired with roomy bottoms),” wrote Canaccord Genuity analyst Camilo Lyons on to Barrons on Thursday.

Canaccord warned consumers of Lululemon’s future at the end of last year after foreshadowing a denim-heavy season and a switch from activewear towards bigger, baggier denim.

Due to a recent Canaccord consumer survey, Barrons reports that Lyons’ ideas on the matter might be coming true, after discovering respondents intended to buy 18 percent fewer pairs of Lululemon pants this upcoming year.

“We started noticing the emergence of denim last summer and based on subsequent visits to trade shows and discussions with industry contacts, we see a greater embracement of this trend in 2017 and 2018,” Lyons told Barrons. According to the same report, Canaccord’s most recent consumer survey shows that half of Lululemon’s customers select the brand’s yoga pants due to fashion as opposed to comfort, which could cause issues for Lululemon down the line if people turn to oversized denim for comfort-wear.

Lyons also lowered his price target on Lulu shares to $45 from $47—$30 percent below the stock’s closing price of $65.