Lululemon Files Lawsuit Against Costco Over Knockoff Apparel

Lululemon, a well-known athletic apparel brand, has taken legal action against Costco, claiming the wholesale giant is selling cheaper copies of its popular items like pants and sweatshirts.

In a lawsuit submitted on Friday in California, Lululemon asserts that Costco is hurting the brand’s reputation and fairness by allegedly trading on its goodwill.

To illustrate, Lululemon offers its ABC men’s pants at a price of $128, whereas Costco’s private label, Kirkland Signature, is selling a similar sweatshirt for only $8.

Lululemon’s statement emphasized, “As an innovation-led company that invests heavily in the research, development, and design of our products, we take the protection of our intellectual property rights very seriously and pursue legal action when necessary.”

The Vancouver-based company has accused Costco of misleading customers into thinking these imitations, or “dupes,” are produced by legitimate manufacturers of the original products.

Notably, both companies have not responded promptly to requests for comments.

In November 2024, Lululemon previously claimed that Costco had used designs from its scuba collection to market hoodies. The lawsuit states that while Costco removed some of the infringing items initially, it later resumed selling similar products.

Lululemon is now seeking unspecified damages and a court order to prevent Costco from continuing these sales.

This isn’t the first time Lululemon has taken legal action regarding designs. In 2021, it sued Peloton for selling apparel that resembled its designs. That case was settled in 2022, leading to a five-year partnership for co-branded clothing.

Recently, Lululemon has adjusted its forecasts for the year, citing a “dynamic macroeconomic environment” alongside rising costs from tariffs, decreased demand, and heightened competition. Interestingly, the company’s shares rose by 2.2% on Tuesday, despite a significant 36% drop in stock price over the year.