Lululemon Sues Costco: Unpacking the 2025 Trademark Dispute

In June 2025, Lululemon Athletica filed a high-profile lawsuit against Costco Wholesale, alleging the retailer sold “knockoff” versions of its popular athleisure products, sparking widespread interest.

With searches for “Lululemon Costco lawsuit” and “Lululemon dupes” surging, this article dives into the lawsuit details, its implications, and consumer reactions, optimized for those seeking updates on this legal clash.

Lululemon vs Costco Lawsuit Overview
On June 27, 2025, Lululemon filed a 49-page complaint in the U.S. District Court for the Central District of California, accusing Costco of infringing on its trademarks, trade dress, and design patents.

The lawsuit claims Costco’s Kirkland Signature brand, along with products from Danskin, Jockey, Spyder, and Hi-Tec, mimic Lululemon’s Scuba hoodies, Define jackets, and ABC pants.

Lululemon alleges these “dupes” confuse consumers, with some believing they’re buying authentic Lululemon items, while others purchase them as affordable alternatives, per CNN and Reuters. For example, Lululemon’s Scuba hoodie retails for $118, while Costco’s version sells for about $8, highlighting stark price differences.

Why the Lawsuit Matters
Lululemon, a Vancouver-based brand founded in 1998, has built a premium reputation through innovative designs and high-end pricing. The company argues Costco’s actions damage its “hard-earned goodwill” and brand exclusivity, per a statement to CNN.

Social media, particularly X, shows mixed sentiment: some users support Costco’s budget-friendly options, with hashtags like #luludupe trending, while others back Lululemon’s fight to protect its intellectual property. Google Trends reports a 20% spike in “Lululemon lawsuit 2025” searches, reflecting public curiosity.

Costco has yet to respond formally, but Lululemon seeks damages, lost profits, and an injunction to stop sales of the alleged dupes.

Consumer and Market Impact
The lawsuit highlights tensions between premium brands and discount retailers. Costco’s private-label apparel, which accounts for over a third of its revenue, thrives on offering value, per TheStreet.

Lululemon’s legal action could set a precedent for how retailers handle “lookalike” products, especially as social media fuels demand for affordable dupes.

A New York Times article cited in the lawsuit noted Costco’s pants “looked almost identical” to Lululemon’s, amplifying consumer confusion. Lululemon’s stock (LULU) is down 37% in 2025, adding pressure to protect its market share, per ABC30.

What’s Next?
Lululemon demands a jury trial and punitive relief, alleging Costco’s actions were “willful and deliberate,” per Global News. If successful, the lawsuit could force Costco to halt sales and pay significant damages.

However, consumer sentiment on X leans toward Costco’s value-driven model, with some calling the lawsuit overreach. This article targets “Lululemon vs Costco 2025” searches, offering clarity on this evolving story.

FAQs

What is the Lululemon Costco lawsuit about?
Lululemon accuses Costco of selling knockoff versions of its Scuba hoodies, Define jackets, and ABC pants, infringing on trademarks and patents, per Reuters.

Which products are involved in the lawsuit?
Six products, including Kirkland’s 5-Pocket Performance Pant and hoodies from Danskin, Jockey, Spyder, and Hi-Tec, per TheStreet.

Why is Lululemon suing Costco?
Lululemon claims Costco’s dupes confuse consumers and harm its brand reputation, per CNN.

Has Costco responded to the lawsuit?
As of July 1, 2025, Costco has not filed a response, per Bloomberg Law.

Where can I follow Lululemon Costco lawsuit updates?
Check Reuters, CNN, or TheStreet for the latest developments.