Lululemon Sues Costco Over Alleged Knockoff Athleisure Apparel
New York (CNN) — Lululemon has filed a lawsuit against Costco, accusing the retail giant of selling unauthorized knockoffs of its popular $128 pants and other high-priced athleisure wear.
In the suit filed Friday in California, the Vancouver-based apparel company alleges that Costco has “unlawfully traded” on Lululemon’s brand reputation and goodwill by offering imitation versions of its products through its private-label line, Kirkland. These lookalike items, Lululemon claims, mislead consumers into believing they are purchasing authentic Lululemon merchandise.
The 49-page filing outlines specific examples of alleged infringement, including a Lululemon Scuba hoodie that retails for $118 being mimicked by a similar Kirkland product sold for just $8. The lawsuit includes side-by-side design comparisons and highlights significant price differences to support its claims.
Costco has not responded to requests for comment.
In a statement to CNN, Lululemon emphasized its commitment to innovation and the importance of protecting its intellectual property. “We take the responsibility of protecting and enforcing our IP rights very seriously and pursue legal action when necessary,” the company said.
The company also argued that the purpose of selling “dupes” is to intentionally mislead consumers into thinking they are buying genuine Lululemon items.
Lululemon is seeking unspecified monetary damages and a court order to halt Costco’s sales of the disputed products.
This isn’t the first time Lululemon has taken legal action to protect its brand. In 2021, it sued Peloton for allegedly copying its apparel designs. The two companies later resolved the dispute and entered a partnership to sell co-branded clothing.
The lawsuit comes as Lululemon faces mounting challenges, including a weaker U.S. retail environment, increased tariffs, and growing competition from other athleisure brands like Vuori and Alo. The company recently lowered its full-year forecast, and shares of Lululemon (LULU) are down 37% year-to-date.