Athleisure at War: Why Lululemon Is Taking Costco to Court

Lululemon has filed a lawsuit against Costco in a California federal court, accusing the retail giant of selling unauthorized knockoffs of its popular athleisure wear under the Kirkland Signature label.

The complaint alleges that Costco has unlawfully leveraged Lululemon’s brand reputation by offering low-cost duplicates of signature items such as Scuba hoodies, Define jackets, and ABC pants, with some Kirkland alternatives priced as low as $19.97, compared to Lululemon’s $100+ originals.

According to the suit, Costco’s private-label strategy, which sometimes involves using the same manufacturers as name brands, creates confusion among consumers who may assume Kirkland products are linked to or made by Lululemon.

The lawsuit claims this ambiguity damages the brand’s image and violates design patents. Lululemon, known for its investment in product innovation and R&D, is seeking a jury trial, damages, and an immediate stop to the sales.

This isn’t the first time the brand has turned to the courts; it previously sued Peloton in 2021 over similar issues, which later ended in a five-year strategic partnership.