The once trendy active wear brand Lululemon is going through a rough patch as rising competition from buzzier brands like Alo and Vuori cut into its sales.

But despite the stock trading at its lowest price since April 2018, following a big revenue miss in the second quarter, analysts still think the upscale retailer of everything from yoga pants to puffy jackets could turn things around.

"We continue to view them as fixable under new leadership through product, design, and merchandising changes," Jefferies analysts wrote in a note last Friday.

New CEO Heidi O'Neill, who took the helm on Sept. 8 after more than two decades at Nike, certainly has her work cut out for her.

"It can return to above-industry growth...eventually," Wells Fargo analysts said when Lululemon's stock faltered last month. But in top-tier cities globally, Lululemon faces "an increasingly saturated market," along with rising competition and a "softer" consumer backdrop.

The key questions are "how to make the brand cool again" and how long that will take, the analysts added.

The stock fell 2% Monday to $92.50 and has more than halved in 2026. After peaking on Dec. 29, 2023, with a closing high of $511.29, it has fallen more than 80% since then.

Of the 37 analysts surveyed by FactSet about the stock, just three rate it a buy with one giving it an overweight rating.