Lululemon says Costco is stealing its clothing designs, and it wants a jury trial to prove it. The athletic wear company has sued the wholesaler, accusing it of selling at least six knockoff articles of clothing, reports the Washington Post. The difference in price is a big one, notes the Wall Street Journal, which contrasts two of the pieces in question: A Lululemon Scuba hoodie for $118 vs. a Danskin Half-Zip Pullover at Costco for $8. Lululemon filed suit in federal court in California, seeking a trial, an immediate halt to Costco's sales of the products, and unspecified financial damages.
"As an innovation-led company that invests significantly in the research, development, and design of our products, we take the responsibility of protecting and enforcing our intellectual property rights very seriously and pursue the appropriate legal action when necessary," a Lululemon spokesperson said in a statement. Costco has not commented on the lawsuit.
The lawsuit alleges that Costco also is misleading customers by selling the Lululemon lookalikes under its private-label Kirkland Signature brand. Many Kirkland products are actually made by name-brand companies, and the suit says Costco is playing off that by not making clear the items are not from Lululemon. The Journal notes that Lululemon has been in a "tough stretch," with sales growth slowing in the 2024 fiscal year after years of double-digit growth.
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