Lululemon Sues Costco Over Alleged Knockoff Activewear in New Trademark Lawsuit

by Alexandra Agraz | Jul 02, 2025
Photo of Lululemon and Costco storefronts side by side. Photo Source: ACHPF/Shutterstock/Jack Hong/Shutterstock via DailyHive

Lululemon is taking legal action against Costco, alleging the wholesale retailer is selling unauthorized imitations of its high-priced athletic wear under the Kirkland brand. The lawsuit, filed in federal court in California, accuses Costco of infringing on Lululemon’s trademark and design rights by distributing garments that closely resemble its original products at discounted prices.

The complaint mentions several Kirkland Signature items that Lululemon claims closely replicate its own, including jackets, hoodies, and leggings. According to the filing, the designs are “strikingly similar,” with one example highlighting a Kirkland hoodie sold for under $10 that resembles Lululemon’s $118 Scuba hoodie.

Lululemon contends that Costco has attempted to benefit from its reputation and brand recognition without permission, misleading consumers into believing the products are genuine or connected to the Lululemon brand.

The activewear brand is seeking monetary damages, the full amount of which has not been disclosed, and a court order to block further sales of the contested products.

The case adds to Lululemon’s history of enforcing its design rights. In 2021, the company brought a similar case against Peloton over apparel designs. That dispute was eventually resolved, and the two companies later entered into a branded partnership.

Costco has not issued a public response to the lawsuit.

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Alexandra Agraz
Alexandra Agraz
Alexandra Agraz is a former Diplomatic Aide with firsthand experience in facilitating high-level international events, including the signing of critical economic and political agreements between the United States and Mexico. She holds dual associate degrees in Humanities, Social and Political Sciences, and Film, blending a diverse academic background in diplomacy, culture, and storytelling. This unique combination enables her to provide nuanced perspectives on global relations and cultural narratives.

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