>> Lululemon investors are far from enjoying a moment of zen. The stock having it's worst day in eight years, plunging 23% Thursday. Sales of the company's high priced athletic wear famous for being made for the gym, but fashionable enough to wear on the street. Collapsing after the holidays, Thompson Reuter's Director of Consumer Research, Sharone Martis.
>> Especially in a time when a lot of the retailers have been suffering because of weak mall traffic and stiff online competition. Lululemon used to be immune to these two factors so the fact that now they're giving us weak guidance is definitely making Wall Street a little bit nervous.
>> The steep fall off in demand leading some Wall Street analysts to question whether the death grip hurting apparel sales is now starting to include the only hot category left. Marits is not ready to go that far.>> It's not the beginning of the end for athleisure, it's more the beginning of a slow down.
Athleisure has been such a strong trend that consumers have filled out their closets with a lot of the merchandises. On top of that you have retailers like Sports Authority that have gone out of business and as a result the market has been saturated with a lot of these items that are being steeply discounted.
>> Lululemon saying the trend is still in good shape it points to a fashion misstep for the recent plunge in sales, particularly not having enough colors on the shelf to lure in early spring shoppers. The company CEO says new colors will be ready for buyers as early as next week.
>> But this is just the latest snafu for the Wall Street darling, there have been problems with see through yoga pants, board Room fights and increased competition from Nike, Under Armour and the Gap. Some investors clearly think Lululemon has lost its way, the stock sinking to its lowest level in more than a year.