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COSTCO is in hot water for allegedly copying some of the most popular items from a top sportswear brand, even after being told to stop.
The retailer has been hit with a lawsuit accusing it of selling knockoffs that mimic cult-favorite athletic gear.
The case was filed in California by Vancouver-based company Lululemon.
The lawsuit names Costco Wholesale Corporation and claims it has been selling copycat versions of the brand’s best-selling apparel.
The pieces in question include Lululemon’s Scuba hoodies, Define jackets, and ABC pants.
According to the 49-page complaint, the dupes have shown up under Costco’s private Kirkland label.
Others are made by brands like Danskin, Jockey, and Spyder.
Lululemon says shoppers are confusing the alleged fakes for real Lululemon gear.
“Some customers incorrectly believe these infringing products are authentic Lululemon apparel while still other customers specifically purchase the infringing products because they are difficult to distinguish from authentic Lululemon products, particularly for downstream purchasers or observers,” the lawsuit reads.
The company has claimed it sent multiple cease and desist letters to Costco before taking legal action.
But with no resolution, it now wants the court to intervene.
Lululemon is demanding a jury trial.
The company wants Costco banned from manufacturing, importing, marketing, or selling any dupes.
It also wants all ads, digital or print, promoting the products taken down.
Lululemon has also asked the court to make Costco hand over profits earned from the alleged copies.
Costco didn’t immediately respond to a request for comment by The U.S. Sun.
Lululemon vs Costco
Originals by Lululemon:
- Scuba hoodies
- Define jackets
- ABC pants
Alleged Dupes Sold at Costco:
- Kirkland Signature hoodies and jackets
- Products from Danskin, Jockey, and Spyder
Lululemon claims some buyers can’t tell the difference, and others buy them because they look so similar.
Costco has yet to respond to the complaint.
The legal fight comes as Lululemon faces pressure from broader retail slowdown.
Earlier in June 2025, the brand’s shares dropped 20 percent amid Trump-era tariffs and soft US sales.
Despite beating Wall Street’s estimates in Q1, the company cut its full-year forecast.
It reported just a 1 percent year-over-year sales increase, falling short of analysts’ 3 percent expectation.
The company blamed tariffs and economic uncertainty for the shift.
To offset that, it’s planning strategic price hikes in the coming weeks.
“It will be price increases on a small portion of our assortments, and they will be modest in nature,” CFO Meghan Frank said on an earnings call.
CEO Calvin McDonald said he was “not happy” with US sales and warned that shoppers are pulling back.
The company, known for its $128 yoga pants, sources products from countries facing up to 30 percent tariffs.
