Wed Jul 02 14:40:00 UTC 2025: ## Lululemon Stock Jumps After Suing Costco Over Alleged Apparel Dupes
**NEW YORK** – Lululemon Athletica (LULU) saw its stock price jump over 3% on Wednesday following a lawsuit filed against Costco (COST) accusing the wholesale retailer of selling knock-off versions of its popular apparel at significantly lower prices. Shares closed up 3.17% on Tuesday, with a modest gain continuing into after-hours trading.
The lawsuit, a major move by Lululemon to combat the growing trend of Gen Z-driven fashion dupes, alleges that Costco is copying its designs under the KIRKLAND brand, potentially misleading consumers into believing the products are associated with Lululemon. The company is seeking full compensation for damages and harm to its brand reputation, alongside a court order to halt the sale of the copycat items and a jury trial.
The stock surge also comes amid a wider uptick in consumer stocks, fueled by strong Fourth of July sales indicating renewed retail optimism. Investors appear to be showing support for Lululemon’s aggressive stance in protecting its intellectual property.
This legal action comes at a time when Lululemon is facing several headwinds. The company’s stock has fallen over 35% year-to-date, impacted by factors including import tariffs and a slowdown in sales in China. Lululemon recently lowered its full-year 2025 earnings per share (EPS) guidance to a range of $14.58 to $14.78, down from its previous outlook of $14.95 to $15.15.
Despite the recent challenges, Wall Street analysts maintain a “Moderate Buy” consensus rating on LULU stock, based on 13 Buys, 11 Holds, and two Sells assigned in the last three months. The average Lululemon share price target is $299.81, suggesting a potential upside of 22.31% from current levels.
The outcome of the lawsuit against Costco could significantly impact Lululemon’s ability to protect its brand in the increasingly competitive apparel market, where fashion dupes fueled by social media trends continue to gain popularity.
First Piper 