Lululemon, LULU, sues Costco, COST, for allegedly selling clothing knock-offs

Lululemon is taking legal action against Costco, accusing the wholesale giant of selling imitations of its $128 pants and other high-end athleisure wear.

In a lawsuit filed on Friday, Lululemon claims that Costco has “unlawfully traded” on the athleisure brand’s “reputation, goodwill, and sweat equity” by offering “unauthorized and unlicensed apparel” that uses infringing and knockoff versions of its designs.

The Vancouver-based apparel company alleges that Costco’s private-label brand, Kirkland, is marketing pants, hoodies, and jackets that closely mimic Lululemon’s products—but at dramatically lower prices. Lululemon contends that Costco is misleading customers into thinking the Kirkland “dupes” are made by the same supplier as the original Lululemon items.

In its 49-page complaint filed in California, Lululemon includes side-by-side comparisons of the garments and their prices. For instance, the company sells a Scuba hoodie for $118, while a similar Kirkland version is priced at just $8.

In a statement to CNN, Lululemon emphasized that, as “an innovation-led company that invests significantly in the research, development, and design of our products,” it takes the protection of its intellectual property seriously and will “pursue the appropriate legal action when necessary.”

Lululemon also stated that a key aim of selling “dupes” is to mislead consumers into thinking they are buying genuine Lululemon products when they are not.

The company is seeking unspecified monetary damages and is asking the court to order Costco to cease selling the disputed items.

This isn’t the first time Lululemon has pursued such legal action. In 2021, it sued Peloton for allegedly copying its clothing designs. That dispute was later resolved, and the two companies eventually partnered to sell co-branded apparel.

Recently, Lululemon revised its full-year outlook downward, citing a “dynamic macroenvironment” marked by decreased foot traffic at U.S. stores, tariff pressures, and growing competition from rivals like Vuori and Alo.

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