Lululemon Sues Costco Over Alleged Knockoffs of Its $128 Athleisure Pants

Athleisure giant Lululemon has filed a lawsuit against Costco, accusing the wholesale retailer of selling unauthorized imitations of its popular apparel items, including its signature $128 pants.

In the suit filed Friday in California, the Vancouver-based company claims that Costco’s private-label brand, Kirkland, is producing and selling apparel that closely mimics Lululemon’s designs – including pants, hoodies, and jackets – at drastically lower prices. Lululemon argues that these “dupes” mislead consumers into believing they are purchasing authentic Lululemon products.

The 49-page legal filing includes side-by-side comparisons of Lululemon items and the alleged Kirkland copies, highlighting similarities in design, fabric, and fit. In one example, Lululemon’s popular Scuba hoodie, which retails for $118, is compared to a Kirkland version sold for roughly $8.

Lululemon contends that Costco is “unlawfully trading on its reputation, goodwill, and sweat equity,” and using product likenesses to capitalise on the brand’s popularity without authorisation or licensing.

“As an innovation-led company that invests significantly in product research, development, and design, we take the protection of our intellectual property seriously,” Lululemon said in a statement. The company added that “one of the purposes of selling ‘dupes’ is to confuse consumers into believing the products are genuine Lululemon items.”

Costco has not yet publicly responded to the lawsuit.

Lululemon is seeking monetary damages for lost revenue and reputational harm and is also asking the court to prohibit Costco from continuing to sell the disputed items.

This is not the first time Lululemon has gone to court over alleged copycat apparel. In 2021, it sued fitness company Peloton over similar claims, though the two later reached a resolution and formed a partnership.

The lawsuit comes as Lululemon faces mounting challenges in the U.S. retail market, including declining store traffic, rising tariffs, and increased competition from newer athleisure brands like Vuori and Alo Yoga. The company recently lowered its full-year outlook, and its stock is down 37% year-to-date.