Lululemon Sues Costco Over Allegedly Knockoff Apparel Designs

Lululemon is taking Costco to court, accusing the retail giant of selling clothing that mimics its signature styles too closely. In a lawsuit filed in California, the activewear brand claims that Costco has been profiting from “confusingly similar” designs, including pants, hoodies, and jackets that allegedly infringe on Lululemon’s trade dress and design patents. The complaint points to six specific items sold under Costco’s Kirkland Signature and other third-party labels like Danskin and Spyder.

According to the suit, Lululemon had previously asked Costco to pull the products from shelves in late 2024, but some allegedly infringing items remained available. The rise of viral “dupes” online — cheaper alternatives to luxury brands — has only amplified the issue, with some Costco offerings getting significant attention for resembling high-priced Lululemon favorites. The company is now seeking damages and a jury trial to resolve the dispute.

Despite the legal battle, both companies’ stocks remain steady. Lululemon maintains the lawsuit is about protecting the integrity and exclusivity of its brand, while Costco has yet to issue an official response. For now, the case highlights the ongoing tension between value-driven retail and high-end branding in a social media–fueled shopping world.