Wide-leg and denim styles are making a comeback in the fashion world. However, as the trend returns, questions arise about its implications for athleisure companies like Lululemon (LULU). Barclays' Consumer Discretionary Analyst Adrienne Yih joins Market Domination to discuss the potential impact of this fashion shift.

Yih notes that denim is experiencing a resurgence after nearly 17 years — with jeggings, skinny jeans, and athleisure dominating recent trends. She suggests that the economy is in the "early adoption to mass adoption" phase of wide-leg denim, signaling a shift in consumer preferences.

While athleisure companies like Lululemon offer wider-leg options for comfort, Yih emphasizes that "the actual trend is grounded in denim." Consequently, she believes consumers will spend more on brands specializing in denim offerings, such as American Eagle (AEO).

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This post was written by Angel Smith