What factor could limit Lululemon's growth potential?

The factor that could limit Lululemon's growth potential is its dependence on the United States market. This reliance presents a risk, as it ties the company's performance closely to the economic conditions, consumer behaviors, and trends within just one geographic area. If the U.S. market experiences a downturn or shifts in consumer preferences occur that negatively impact sales, it could significantly hinder Lululemon's overall growth and expansion plans.

Diversifying its market presence internationally could mitigate this risk, allowing Lululemon to tap into new customer bases and reduce the impact of any adverse trends in the U.S. market. While competition and innovative design capabilities are indeed important factors in the athletic wear industry, they either represent challenges or strengths that can be navigated with strategic management. Similarly, increased demand for sustainable products is largely a positive trend that could enhance growth opportunities rather than limit them.