Lululemon sues Costco for selling knockoffs of its clothing line
In a lawsuit filed on Friday, Lululemon claimed certain Costco products have 'unlawfully traded' on the brand's 'reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel employing knockoff, infringing versions' of its clothing line.
The company claimed that Costco's products violate trademark law due to 'some customers incorrectly believe these infringing products are authentic Lululemon apparel.' While in other cases, 'customers specifically purchase the infringing products because they are difficult to distinguish from authentic Lululemon products,' the lawsuit alleged.
In the 49-page lawsuit, Lululemon shows the similarities to the Costco products.
According to Lululemon, the infringed products from Costco include; Danskin Ladies Half-Zip Hoodie, Danskin Half-Zip Pullover, Jockey Ladies Yoga Jacket, Spyder Women's Yoga Jacket, Hi-Tec Men's Scuba Full Zip, and Kirkland 5 Pocket Performance Pant.
'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,' Lululemon said in a statement.
Lululemon has sued Peloton in 2021, for allegedly making similar looking products but two years later, the companies worked together to sell clothing.
Lululemon is seeking to 'recover fully' from its lost profits, and for Costco to end all manufacturing of products that violate trade dress.
Copyright 2025 UPI News Corporation. All Rights Reserved.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
Is the Party Over for Lululemon Stock?
Key Points Lululemon's stock has plunged nearly 60% from its all-time highs. It's struggling with tough competitive and macro headwinds. The stock looks cheap, but it could deserve that discount valuation. 10 stocks we like better than Lululemon Athletica Inc. › Lululemon (NASDAQ: LULU) stock closed at its all-time high of $511.29 on Dec. 29, 2023. That 5,581% gain from its split-adjusted IPO price of $9 in July 2007 would have turned a $10,000 investment into $568,100. The yoga and athletic apparel retailer impressed the bulls with its resilience during the early days of the pandemic and its ambitious growth plans. But today, Lululemon's stock trades at about $220. It lost its luster as its North American growth stalled out and it faced tougher competition from smaller and cheaper brands, and tariffs exacerbated that pressure. So is the party over for this former high-growth stock? What happened to Lululemon over the past three years? Lululemon established an early mover's advantage in the premium yoga apparel space, and it profited from the rapid growth of the athleisure market. It expanded its digital marketplace and opened more brick-and-mortar stores to boost its direct-to-consumer sales, and it used free yoga classes and other community events to lock in its customers. Back in 2019, Lululemon launched its "Power of Three" plan to double digital revenues, double its men's revenues, and quadruple its international revenues from fiscal 2018 (which ended in February 2019) over the following five years. It achieved all of those goals ahead of schedule, even as it temporarily closed some of its stores during the pandemic. That success prompted Lululemon to launch a new "Power of Three x2" plan in 2022, which set the same goals for doubling its men's revenues and quadrupling its international revenues from fiscal 2021 to fiscal 2026. It expected that new plan to nearly double its annual revenue from $6.3 billion in fiscal 2021 to $12.5 billion in fiscal 2026. But over the past three years, its top-line growth decelerated. Its sales of women's apparel in North America slowed down as it grappled with weak consumer spending and tougher competition from Costco's (NASDAQ: COST) Kirkland apparel, Amazon's (NASDAQ: AMZN) private label apparel, and smaller brands like Alo Yoga, Vuori, and Gymshark. Metric FY 2022 FY 2023 FY 2024 Total Revenue $8.1 billion $9.6 billion $10.6 billion Revenue Growth 30% 19% 10% Same-store sales Growth 16% 13% 4% Data source: Lululemon. FY = fiscal year. Lululemon's overseas expansion and new products (including Glow Up, Daydrift, and BeCalm) couldn't offset its soft sales of women's apparel in the U.S. market. To make matters worse, its chief product officer Sun Choe, who had held that key position since 2018, abruptly resigned last year. All of those challenges eroded Lululemon's pricing power, so it relied more heavily on markdowns to drive its revenue growth. It also absorbed the higher costs from inflation and overseas tariffs instead of passing those expenses onto its consumers. Despite that pressure, its gross margin still expanded from 55.4% in fiscal 2022 to 59.2% in fiscal 2024 as it reduced its freight and input costs, reined in its markdowns, and prioritized sales of higher-margin products in higher-margin markets. What will happen to Lululemon over the next three years? During Lululemon's latest conference call for the first quarter of 2025, CEO Calvin McDonald said he was "definitely not happy" with the brand's performance in the U.S. -- and that its consumers remain "cautious" and "discerning" in this choppy macro environment. Nevertheless, McDonald reaffirmed the company's commitment to its "Power of Three x2" targets. Therefore, investors can still expect Lululemon to generate at least $12.5 billion in revenue in fiscal 2026 -- but that would only represent a compound annual growth rate of 8.6% from fiscal 2024. Analysts are less optimistic. They expect its revenue to only grow 6% to $11.2 billion in fiscal 2025 (which ends in February 2026), 7% to $12.0 billion in fiscal 2026, and 6% to $12.7 billion in fiscal 2027. Its EPS is expected to stay nearly flat in fiscal 2025, rise 6% in fiscal 2026, and grow 4% in fiscal 2027. We should take those longer-term estimates with a grain of salt, but they suggest the company will keep struggling in the saturated North American market and rely more heavily on its overseas growth. It also probably won't launch another "Power of Three" growth plan in the future. From a growth stock to a value stock Lululemon's stock looks cheap at just 15 times this year's earnings, but it deserves that lower valuation because its core growth engine is cooling off. Its downside potential might be limited, but it won't revisit its all-time highs anytime soon. For now, the party is over for Lululemon -- but it could eventually find fresh ways to revive its brand. Should you buy stock in Lululemon Athletica Inc. right now? Before you buy stock in Lululemon Athletica Inc., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lululemon Athletica Inc. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,075,791!* Now, it's worth noting Stock Advisor's total average return is 1,039% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, and Lululemon Athletica Inc. The Motley Fool has a disclosure policy. Is the Party Over for Lululemon Stock? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Miami Herald
6 hours ago
- Miami Herald
Walmart makes bold move to reach sports fans
When you think of stores that are fun to shop at, you may or may not think of Walmart. It's hard to argue the fact that shopping at Walmart can be both affordable and convenient, giving customers the best of both worlds. In addition to its low prices, Walmart is a place where you can buy toilet paper, shoes, and a kitchen organizer all under the same roof. Related: Costco makes bold move into area Target and Kohl's own On the other hand, Walmart has a bit of a reputation problem. While it's known as a destination for affordable products, many people don't necessarily get excited to go to Walmart. Don't miss the move: Subscribe to TheStreet's free daily newsletter Rather, shopping at Walmart, for many, is similar to unloading the dishwasher or taking a car in for an oil change. You know you have to do it, but it's more of a chore than anything else. In the United States., most people would probably say that their favorite sport to watch is football. And baseball might be a close second. Soccer isn't necessarily as popular in the U.S. But on a global level, it's perhaps the most frequently watched sport, period. Related: Costco adds strict new policy for free samples And it's also growing in popularity in the U.S. These days, more Americans are tuning into major international soccer events. And Major League Soccer (MLS), the U.S. and Canada's professional league, is gaining steam and seeing viewership and game attendance increase. That makes Walmart's partnership with MLS a positive one. The retail giant recently entered into a multi-year collaboration with MLS to have a presence at soccer events and promote a lineup of products geared toward soccer fans. "Soccer is more than a sport," said William White, chief marketing officer at Walmart. "Walmart is focused on celebrating the game and making it more personal for fans. Soccer-related items aren't new at Walmart. Walmart has long been known as a store where you can buy anything, including soccer balls, shoes, and gear. The company's new partnership with MLS, however, takes things up a notch. Related: Costco doesn't want members (and non-members) to know this Now, Walmart has begun selling a host of branded gear. Soccer fans can shop by team and buy affordable branded products, including: HatsShirtsJerseysSweatshirts and hoodiesSocks Walmart is also offering collectibles, such as rare soccer cards. At a time when the competition is fierce in retail, Walmart's foray into soccer is a smart one. It's a move that could attract not only more consumers, but younger consumers – an audience retailers tend to clamor for. In addition to its current lineup of soccer gear and products, Walmart plans to strategically update its inventory during the season to reflect team matchups and tournament timelines. Walmart has even gone a step further by introducing a selection of fun soccer-themed products like plates and banners so fans can host at-home MLS viewing parties. It has also curated a selection of soccer party snacks to help shoppers keep their guests well-fed. More Retail: Walmart CEO sounds alarm on a big problem for customersTarget makes a change that might scare Walmart, CostcoTop investor takes firm stance on troubled retail brandWalmart and Costco making major change affecting all customers If its partnership with MLS proves successful, Walmart could be inspired to dive deeper into the world of sports – and reinvent itself as not only a convenient and affordable shopping destination, but also a fun one. Related: JCPenney goes with heavy discounts to win back customers The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.

Yahoo
a day ago
- Yahoo
Monolithic Power forecasts third-quarter revenue above estimates on AI demand
(Reuters) -Monolithic Power Systems forecast third-quarter revenue above estimates on Thursday, betting on strong demand for its power control products and semiconductors as generative artificial intelligence drives data center expansion. Shares of the Kirkland, Washington-based company rose nearly 5% in trading after the bell. The growing adoption of GenAI technology has helped drive demand for the hardware required to help run advanced data centers, helping providers such as Monolithic, which counts AI chip heavyweight Nvidia among its customers. The company expects third-quarter sales between $710 million and $730 million, above analysts' average estimate of $678 million, according to data compiled by LSEG. Revenue in its enterprise data market benefited from higher sales of the company's power management solutions for AI and server applications, Monolithic Power said in a statement. Its second-quarter revenue stood at $664.6 million, compared with estimates of $650.8 million. Net income in the quarter was flat at $133.7 million. The company has largely held a dominant share across multiple power management sockets for Nvidia and AMD, analysts say. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data