Lululemon is suing Costco, accusing the wholesale giant of selling knockoffs of several of its signature designs under the Kirkland Signature brand. The lawsuit, filed on July 1, 2025, alleges that Costco is copying Lululemon’s proprietary apparel designs and offering them at lower prices. The complaint highlights the popularity and success of Lululemon products, which has led some companies to create “knockoffs” or “dupes” to capitalize on the brand’s reputation.
It references the hashtag “LululemonDupes” on social media, used by consumers to find similar products at reduced prices. Lululemon accuses Costco of trading on its “reputation, goodwill, and sweat equity by selling unauthorized and unlicensed apparel” that mimics the brand’s patented designs. In a statement, Lululemon said it takes the responsibility of protecting and enforcing its intellectual property rights very seriously and pursues appropriate legal action when necessary.
Costco has not yet responded to requests for comment. Founded in Vancouver, British Columbia, in 1998, Lululemon has established itself as a leading retailer in the athleisure market, with single items often costing more than $100. The company’s revenue topped $10 billion last year.
Costco, operating on a membership-only basis, has garnered a devoted following for its private label Kirkland Signature brand, known for offering lower-priced alternatives to name-brand products.
Lululemon sues Costco over knockoffs
Costco’s revenue totaled $254.5 billion in fiscal 2024.
Specifically, Lululemon claims Costco’s Kirkland line is selling similar pants, hoodies, and jackets at a fraction of the price. The lawsuit shows the alleged design similarities between Lululemon’s products and Costco’s, as well as the price differences. For example, Lululemon sells a Scuba hoodie for $118, while a Costco version sells for about $8.
Lululemon contends that one of the purposes of selling “dupes” is to confuse consumers into believing that the “dupes” are Lululemon’s authentic products when they are not. The company is seeking to recover its financial losses by seeking an unspecified amount of monetary damages and asking a court to demand that Costco stop selling these products. This isn’t the first time Lululemon has taken legal action over its product designs.
In 2021, the company allegedly made claims against another retailer for producing similar-looking apparel, though the companies later mended their relationship. Lululemon recently cut its full-year guidance citing a “dynamic macroenvironment” that includes a decline in visits to its US stores and rising competition from other brands. Shares of Lululemon are down 37% for the year.
