Spotting the discreet logo, a stylised A to represent 'athletically hip' on the back of the leg, is no challenge.

The Vancouver-based and originated label has been rapidly growing since opening its first store in Kitsilano in 2000. Since then it's expanded to more than 50 stores in the US, Japan and Australia.

The brand, the brainchild of Chip Wilson, a successful surf, skate and snowboard apparel maker, who is a yoga devotee, took major steps in its expansion plans in recent years.

In 2005 a 48 per cent stake in the company was sold to two Boston-based private equity firms for US$93 million. The firm had an initial public offering last summer at US$18.

The company's growth has continued. By the end of next year, it plans to double the number of North American stores.

The question many people are asking in Vancouver, where the label's local beginnings are a source of pride, is whether the brand is becoming too watered down. From pants, the company has smartly expanded to more accessories, with hoodies and yoga bags and T-shirts.

'They're good yoga gear,' said Danny Lau, a yoga instructor at Westcoast Hot Yoga. 'There's a lot of competition right now, but they're still the major brand in the market.'

At least 80 per cent of his students wear Lululemon pants and tops. But Mr Lau said people have noticed that the quality has changed. 'It's definitely not the same quality it was five years ago. People are noticing holes and stuff that they wouldn't have seen even a few years ago.'

Mr Lau says the company has been great about fixing its clothes. He knows one person who's taken a pair of shorts back a number of times because of holes and the company has cheerfully patched up each tear.

No one is blaming China, but there is a recognition that the Vancouver company's expansions and growth have come at a cost. The company, which has kept a manufacturing base in Vancouver, now makes its clothes in China, the US, Taiwan, Indonesia and India.

It must shift manufacturing to more cost-attractive locations and close domestic factories, the company maintains, because of global economic forces. Those changes are paying off on the bottom line.

Its sales are exceeding expectations and share prices are soaring. Barbara Gray, an analyst at Blackmont Capital, had a target price of US$41.50 last month when she recommended a buy for the stock. After announcing sales higher than forecasted, the shares jumped 15 per cent in one day to US$46.35.

That was enough for Ms Gray to downgrade Lululemon to a hold 'purely due to stock price appreciation way above our target price'.

It's clear to some, like fashion columnist and design expert JJ Lee, that the brand is reaching a plateau. Even so, Mr Lee says the appeal remains strong for the foreseeable future. 'It's replaced sweat pants for comfort and they have the ability to make women look good.'

As long as it can do that, Mr Lee says, Lululemon will continue to have devoted customers no matter where it is made.