Lululemon Sues Costco for Alleged Clothing Duplicates
During the same summer that Mondelez International Inc. took legal action against ALDI U.S. related to purported similarities in private label packaging, athletic apparel company Lululemon Athletica Inc. is suing Costco Wholesale Corp. for possibly copying its designs and potentially infringing on its patents.
In a lawsuit filed in California, Lululemon contended that Costco is misleading some shoppers into thinking that similar Kirkland-branded items are made by Lululemon, given the fact that the Issaquah, Wash.-based club store operator works with other manufacturers to its own brand items.
“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 to the Associated Press.
Lululemon shared examples of concerning products in its filing, including a hoodie for men sold for less than $10 at Costco compared to a similar design priced at $118 at Lululemon’s stores and sites. According to the AP report, Lululemon is seeking monetary damages and is requesting that Costco pull the products in question.
In June, the Vancouver, British Columbia-based Lululemon reported a 7% year-over-year gain in net revenue during the first quarter of 2025. For the full year, the apparel company projects net revenue to land between $11.150 billion to $11.300 billion.
Progressive Grocer has reached out to Costco for comment, but did not hear back at press time.
The recent CPG versus store brand actions come as private label products continue to surge in popularity. According to a recent report by market insights firm NIQ, private label product sales grew 4.1% last year. The Private Label Manufacturers Association reported earlier this year that sales of store brands climbed $9 billion to a record $271 billion in 2024.
Issaquah, Wash.-based Costco is No. 3 on The PG 100, Progressive Grocer’s 2025 list of the top food and consumables retailers in North America. PG also named the company to its Retailers of the Century list.
