Lululemon Slams Costco with Massive Lawsuit Over Yoga Pants Heresy (This Means War!)

You know what’s more American than yoga pants? Suing over yoga pants. Lululemon just went full “Karen with a law degree,” dragging Costco for the unspeakable crime of selling $8 hoodies to people who think “flow” is what happens after three Kirkland margaritas. 

(Source: Giphy) 

In short, Lulu, the brand that convinced a generation to spend $128 on pants that double as both gym wear and divorce court attire, is big mad… like cease and desist mad. The company claims Costco’s been playing dress-up with knock off versions of its greatest hits: the SCUBA pullover, the DEFINE jacket, and those culty ABC pants. Meaning, they’ve been slapping together suspiciously familiar designs, pricing them so low they're practically an act of terrorism ($8 pullover, $10 pants), and letting the TikTok “LululemonDupe” crowd do the rest.

(Source: CNN) 

Is it theft? Is it fashion? Lulu’s lawyers say trade dress infringement, patent infringement, unfair competition under the Lanham Act, and a whole bunch of other legalese that boils down to: “Stop letting peasants look comfy for less.” Additionally, Lulu’s argument is that Costco works with the same or similar manufacturers, then slaps on that Kirkland label and lets the confusion marinate… because, honestly, nobody’s reading the tags when the price is right and there’s a free sample tray in sight. “Source ambiguity,” says Lululemon, is leading folks to believe Kirkland’s not just a dupe, but the real deal, and that’s hurting their “substantial fame and considerable goodwill.” (Their words, not mine.) 

(Source: Giphy) 

Costco, naturally, is offering the classic “no comment,” presumably because they are savvy enough to know what they are doing. Case in point: In the age of inflation, they’ve somehow kept their hot dog combo at a $1.50. Who else is doing that financial wizardry? I’ll wait. But alas, Lululemon isn’t new to the snitch game. Peloton caught a lawsuit for wearing Lulu’s “vibes” a little too well, and two years later, they were business partners. So don’t be shocked if this ends with a Kirkland x Lululemon collab, and suddenly goes from a family shopping activity to downright insufferable. 

Of course, it doesn’t help the fact that Lulu is down -33% this year, with visits to their stores slumping as inflation makes $100+ clothing look like a hate crime to the wallet. They’re also getting squeezed by inflation, tariffs, and about forty-seven other athleisure startups that want to be the next cult for people who regret their MBAs. So yeah, they need this lawsuit to land. Hard. And they also want Costco banned from selling anything that might make you look good at pilates without mortgaging your house.

(Source: Giphy) 

In the end, this is just another pissing match in corporate America. As for investors, Lulu is up 1% on the day and Costco has dipped -0.6%. But considering the magnitude of frustration that Lulu is throwing at the House of the Double Chunk Chocolate Cookie… it could escalate fairly quickly. Meaning, keep your eyes on this story and place your bets accordingly. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.