Founded in Vancouver, BC, Lululemon Athletica is a locally popular store that specializes in yoga clothing. Until very recently, the company did not have much competition in the market, but according to The Globe and Mail, retailers such as Nike Inc., Gap Inc., and Joe Fresh Style have commenced their own yoga lines, selling their products at considerably lower prices. In order to combat the opposition, Lululemon has started to pay its employees more, in hopes that they will not leave for the other companies; however, as the economy slips further into recession, consumers will find it harder to afford the products’ high prices. It is now estimated that “the third quarter profit-per-share outlook is between 22 and 24 cents, while analysts had [originally] expected 24 cents.” On the other hand, Lululemon’s financial officer reports that he sees no significant impact by the latest addition of competition. If the company were to maintain their current target of the higher end consumer market, it must realize that this could potentially result in slower growth. It is difficult to determine at this point whether Lululemon’s predominant dependence on its yoga clothing’s high quality and performance level can survive today’s economy.