A shift in fashion from 'athleisure to denim' to impact sales at Lululemon, Canaccord says

A customer browses jeans at a Gap store in San Francisco.
David Paul Morris | Bloomberg | Getty Images

An era of wearing athletic apparel in public may soon hit a wall as consumers choose dressier clothing instead, a trend that could impact sales at Lululemon, according to Canaccord Genuity analysts, who downgraded the stock to sell from neutral.

"After a strong eight-year cycle, we believe the athleisure apparel trend has peaked," equity analyst Camilo Lyon wrote in a note to clients Friday.

He thinks there's "growing evidence" that consumers are refraining from wearing athletic apparel such as yoga pants on the street and opting for denim instead.