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Lululemon Sues Costco Over Imitation Athleisure Products

6/30/2025

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Story summary
  • Lululemon has filed a lawsuit against Costco for selling imitation athleisure products, including $128 pants and hoodies.
  • The lawsuit alleges that Costco's Kirkland line misleads customers into believing they are genuine Lululemon items.
  • Lululemon is pursuing monetary damages and an injunction to stop Costco from selling these products.
  • Previously, Lululemon sued Peloton for similar issues but later formed a partnership.
  • Lululemon's shares have fallen 37% this year due to rising competition and reduced store traffic.