Lululemon Athletica, the Canadian athletic apparel giant, has filed a lawsuit against Costco Wholesale Corporation, alleging that the retailer has been selling “confusingly similar” replicas of its popular clothing items. The lawsuit, filed on June 27, 2025, in the U.S. District Court for the Central District of California, accuses Costco of infringing on Lululemon’s trademarks and design patents.
Costco Lululemon Dupe Allegations
At the heart of the lawsuit are several Costco products that Lululemon claims closely mimic its designs. Specifically, Lululemon points to Costco’s Kirkland Signature pants, as well as jackets and hoodies from brands like Danskin, Jockey, Spyder, and Hi-Tec. These items are said to resemble Lululemon’s Scuba hoodies, Define jackets, and ABC pants, which retail for $118, $128, and $128 respectively. Lululemon argues that these “dupes” are sold at significantly lower prices, leading to consumer confusion and potential harm to its brand reputation.
Trademark and Design Patent Infringement
Lululemon’s legal team asserts that Costco’s products infringe upon the company’s intellectual property rights, including trademarks, trade dress, and design patents. The lawsuit highlights that the similarities between the products are so striking that consumers may mistakenly believe they are purchasing authentic Lululemon items. Lululemon contends that Costco’s actions have unlawfully traded upon its reputation and goodwill, causing significant harm to the brand.
Previous Attempts at Resolution
Before resorting to legal action, Lululemon reportedly sent multiple cease-and-desist letters to Costco, urging the retailer to stop selling the allegedly infringing products. Despite these efforts, Lululemon claims that Costco continued to sell the disputed items, prompting the company to seek a jury trial and damages for lost profits. The lawsuit also requests that the court order Costco to cease the manufacturing and distribution of the infringing products.
Social Media Buzz
The lawsuit has sparked widespread discussion on social media platforms, with users sharing images and videos of the alleged “dupes”. Influencers and shoppers have highlighted the striking similarities between the products, fueling debates about brand imitation and consumer rights. Some consumers express support for Costco’s more affordable alternatives, while others side with Lululemon, emphasizing the importance of protecting original designs.
Financial Impact
The lawsuit comes at a time when Lululemon is facing financial challenges. Despite surpassing Q1 earnings expectations, the company’s shares dropped by 20% in June 2025 due to weak U.S. sales and increased sourcing costs. The ongoing trade dispute and the alleged infringement by Costco may further impact Lululemon’s market position and brand value.
As of the latest trading session, Lululemon’s stock price stands at $237.58, while Costco’s stock is at $989.94. The outcome of this legal battle could have significant implications for both companies’ financial futures.
The legal proceedings are still in their early stages, and it remains to be seen how the court will rule on the allegations. This case underscores the ongoing tension between brand protection and consumer demand for affordable alternatives. As the fashion industry continues to grapple with issues of design imitation and intellectual property rights, the outcome of this lawsuit may set a precedent for future cases involving “dupe” products.
