Lululemon's Lawsuit Against Costco Highlights Rise of Fashion 'Dupes'

FILE - Lululemon signs are displayed outside a retail location in the Seaport District, Dec. 13, 2024, in Boston. (AP Photo/Charles Krupa, File)
FILE - Lululemon signs are displayed outside a retail location in the Seaport District, Dec. 13, 2024, in Boston. (AP Photo/Charles Krupa, File)
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Lululemon's Lawsuit Against Costco Highlights Rise of Fashion 'Dupes'

FILE - Lululemon signs are displayed outside a retail location in the Seaport District, Dec. 13, 2024, in Boston. (AP Photo/Charles Krupa, File)
FILE - Lululemon signs are displayed outside a retail location in the Seaport District, Dec. 13, 2024, in Boston. (AP Photo/Charles Krupa, File)

Fashion “dupes,” or less expensive versions of high-end clothing and other accessories, are just about everywhere these days. They're also drawing some businesses into legal battles.

In the latest example, Lululemon slapped a lawsuit against Costco on Friday, accusing the wholesale club operator of selling lower-priced duplicates of some of its popular athleisure apparel.

Across the retail industry, it’s far from a new phenomenon. But social media is pushing the culture of online dupe shopping to new heights as influencers direct their followers to where they can buy the knockoffs. Want a taste of Hermès' $1,000 fuzzy slippers?

Target has a version for $15. Looking for a $2,800 price Bottega Veneta hobo bag? There’s a version for $99 on online clothing and accessories upstart Quince, which has become a go-to for fashionistas.

It's not even the first time Lululemon has encountered what it says are knockoffs of its clothing, which often carry steep price tags of over $100 each for leggings and sporty zip-ups. Without specifying additional sellers beyond Costco in Friday’s complaint, Lululemon noted that a handful companies have “replicated or copied” its apparel to sell cheaper offerings — including those popularized online through hashtags like “LululemonDupes” on TikTok and other social media platforms.

Dupes aren't new For years, companies have rolled out a range of cheaper option for consumers to buy instead of pricey name-brands or designer labels — often through retailers' house or generic brands. Unlike more direct copies of the product with an unauthorized trademark or logo of a patented brand, “pure” dupes that just resemble certain features are generally legitimate. They can even spark awareness of the original items.

But the rising frenzy for dupes, particularly in the fashion space, signals that many shoppers want a taste of luxury, but no longer want to pay for (or care about) getting the real thing.

Late last year, for example, discount chain Walmart created a buzz when it started selling a leather bag online that resembled Hermès’ coveted Birkin bag. The $78 item — sold by Kamugo, which doesn’t appear to have its own website — was a fraction of the price of the original, which goes from $9,000 to hundreds of thousands of dollars on resale and auction sites. Influencers labeled the leather bag a “wirkin.” Other suppliers including BESTSPR, YMTQ and Judy were listed on Walmart’s site selling similar totes.

While popular among shoppers, these kind of look-alikes can frustrate the targeted companies. Following the viral fame of the “wirkin,” Hermès Executive Chairman Axel Dumas shared his annoyance, for example.

“Making a copy like this is quite detestable,” Dumas said in a corporate earnings call in February. Still, he acknowledged that it was “quite touching” to see so many consumers want a bag with the Birkin style — and that “difference in quality” was still evident, noting that nobody bought the dupe thinking it was from Hermès.

When dupes venture into uncertain legal territory Alexandra Roberts, a professor of law and media at Northeastern University, said that “the term ‘dupe’ itself doesn’t tell us much about legality," noting the word has also been used to describe more traditional counterfeits.

But overall, dupes can move into shaky legal territory, including copyright and trademark infringement, particularly if a dupe marketer makes false claims about the duplicate or the original.

“With fashion, in particular, we’re going to get into some thorny questions," Roberts said. That includes what intellectual property rights exist and how enforceable they are, she explained, and whether there is actual infringement or if a product is just “positioning itself as a less expensive alternative.”

Often such disputes boil down trademark questions around consumer confusion or patented product designs. Several businesses have already put this to the test, but not always successfully.

In December, for example, Benefit lost a lawsuit in California over E.l.f.'s $6 Lash ’N Roll mascara, which is similar to Benefit’s $29 Roller Lash mascara. The judge’s decision was “a resounding win for us,” E.lf. CEO Tarang Amin previously told The Associated Press.

“The basic reality is we always put our E.l.f. twist on it,” he said. “It’s an E.l.f. product that’s a much better value.”

Lululemon sues Costco In its lawsuit, Lululemon argued that Costco had “unlawfully traded” on Lululemon’s reputation and that it was suing as part of wider intellectual property enforcement “directed to retailers who have chosen to copy rather than compete.”

Lululemon accuses Costco of making duplicates of several products, including its popular Scuba hoodies, Define jackets and ABC pants. Lululemon says one of the duplicates that Costco sells is the Hi-Tec Men’s Scuba Full Zip, with the lawsuit showing a screenshot image of Costco’s website showing the item priced at $19.97.

Roberts said she was “a little skeptical” of some of Lululemon's claims, noting that the design patents in particular could be hard to challenge. And she pointed to Lululemon's asserting common law trade dress over a “triangle kind of shape in the crotch region” of the ABC pants.

“My first reaction as a trademark expert is that looks pretty functional,” she said, and functional matter is not protected under trademark law. “I was just cracking up because that particular claim seemed really far-fetched to me. Those pants look really basic."
Still, Roberts noted that Lululemon had some plausible claims.

Lululemon alleges that Costco is known to use manufacturers of popular branded products for its private label Kirkland brand, although the companies involved don't clearly reveal that information to customers. Due to this, Lululemon claims some shoppers may believe that Kirkland-branded products are made by the authentic supplier of the “original” products.

Roberts said this could rule in Lululemon's favor as something that “weighs toward consumer confusion.” Still, she noted that most of the products Lululemon mentioned in its complaint weren't sold under the Kirkland brand, which could undermine the argument.

A message was left Tuesday seeking comment from Costco on the lawsuit.

Lululemon found itself in a similar dispute with Peloton in 2021, when it sued the exercise bike company over alleged “copycat products” in its then-new clothing lines. Two years later, the companies announced a five-year partnership that included Lululemon becoming the primary athletic apparel partner to Peloton.



Estee Lauder Beats Quarterly Sales Estimates, to Cut More Jobs

Estee Lauder beat Wall Street estimates for third-quarter sales on Friday. (Getty Images via AFP)
Estee Lauder beat Wall Street estimates for third-quarter sales on Friday. (Getty Images via AFP)
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Estee Lauder Beats Quarterly Sales Estimates, to Cut More Jobs

Estee Lauder beat Wall Street estimates for third-quarter sales on Friday. (Getty Images via AFP)
Estee Lauder beat Wall Street estimates for third-quarter sales on Friday. (Getty Images via AFP)

Cosmetics maker Estee Lauder beat Wall Street estimates for third-quarter sales on Friday, driven by improving sales in China ‌and Europe ‌as CEO ‌Stephane ⁠de La Faverie's turnaround ⁠plan takes hold, sending its shares up 16% premarket.

The company, which has ⁠been in talks ‌to ‌merge with Jean ‌Paul Gaultier-owner Puig, posted ‌quarterly sales of $3.71 billion, compared with analysts' estimates of $3.69 billion, according to ‌data compiled by LSEG.

The company ⁠also ⁠revised its job cut target to a range of 9,000 to 10,000 from the previously estimated range of 5,800 to 7,000.


Armani 2025 Revenue Fell 2.8%, CEO Hasn't Met Potential Buyers

FILE - Actress Cate Blanchett, from left, designer Giorgio Armani, and actress Julia Roberts pose for photographers upon arrival at the British Fashion Awards in central London, Dec. 2, 2019. (Photo by Joel C Ryan/Invision/AP)
FILE - Actress Cate Blanchett, from left, designer Giorgio Armani, and actress Julia Roberts pose for photographers upon arrival at the British Fashion Awards in central London, Dec. 2, 2019. (Photo by Joel C Ryan/Invision/AP)
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Armani 2025 Revenue Fell 2.8%, CEO Hasn't Met Potential Buyers

FILE - Actress Cate Blanchett, from left, designer Giorgio Armani, and actress Julia Roberts pose for photographers upon arrival at the British Fashion Awards in central London, Dec. 2, 2019. (Photo by Joel C Ryan/Invision/AP)
FILE - Actress Cate Blanchett, from left, designer Giorgio Armani, and actress Julia Roberts pose for photographers upon arrival at the British Fashion Awards in central London, Dec. 2, 2019. (Photo by Joel C Ryan/Invision/AP)

Italian fashion group Armani said on Wednesday its revenue fell 2.8% at constant exchange rates last year, weighed by a weak performance of its wholesale channel.

In 2025, the company's revenue totaled 2.2 billion euros ($2.57 billion), while total turnover, including direct licensee sales, was 4 billion euros.

"We face a possible structural change in the approach to luxury and fashion ⁠by current consumers ⁠and potential, which must be taken into account," Reuters quoted Armani group CEO Giuseppe Marsocci as saying in a statement.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 3.2% year-on-year to 152.7 million euros, while operating ⁠profit increased 2% to 52.6 million euros.

Trends in the first months of 2026 were in line with the previous year, with unfavorable currency movements weighing on performance.

Giorgio Armani, the group's founder who died last September, instructed his heirs to sell an initial stake in the company to players such as L'Oreal, EssilorLuxottica and French ⁠luxury ⁠giant LVMH.

In an interview with Italy's Sole 24 Ore published on Wednesday, Marsocci said there was no update on the group's shareholding structure, adding that interest in the Armani group remained strong.

"We have not started meetings with the three potential buyers, and there are no tensions among the family members," Marsocci said in a separate interview with WWD magazine.


Ferragamo Expands Leather Mapping Efforts as EU Sustainability Rules Take Shape

James Ferragamo, a chief product officer for the Salvatore Ferragamo group, talks with journalists during an interview with the Associated Press, in Milan, Italy, Wednesday, April 22, 2026. (AP Photo/Antonio Calanni)
James Ferragamo, a chief product officer for the Salvatore Ferragamo group, talks with journalists during an interview with the Associated Press, in Milan, Italy, Wednesday, April 22, 2026. (AP Photo/Antonio Calanni)
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Ferragamo Expands Leather Mapping Efforts as EU Sustainability Rules Take Shape

James Ferragamo, a chief product officer for the Salvatore Ferragamo group, talks with journalists during an interview with the Associated Press, in Milan, Italy, Wednesday, April 22, 2026. (AP Photo/Antonio Calanni)
James Ferragamo, a chief product officer for the Salvatore Ferragamo group, talks with journalists during an interview with the Associated Press, in Milan, Italy, Wednesday, April 22, 2026. (AP Photo/Antonio Calanni)

Italian luxury brand Ferragamo said it can map the country of origin for much of the leather used to make its coveted footwear and handbags, a first step in traceability according to experts.

The announcement comes during a wave of European Union sustainability rules that are increasing pressure on fashion brands to account for materials in their supply chains.

The family-run and publicly traded fashion house has been issuing sustainability reports for over a decade, but the 2025 report released March 31 is the first that contains figures on material traceability — notably for leather, which experts say is harder to trace than textile fibers such as cotton.

“We have been using leather in a more sustainable way,’’ James Ferragamo, the brand’s chief product officer and grandson of founder Salvatore Ferragamo, told The Associated Press in an interview last week. “I think it is one of the more sustainable materials in my point of view.”

Most of the tanneries working with the brand “control their water, have fair treatment of the workforce, monitor their supply chain ensuring that they’re buying leather from those who are not deforesting, and taking the right approach also in terms of breeding and animal welfare,” he said.

Traceability in fashion sustainability Traceability of materials is considered a first and necessary step for the fashion industry, which is facing a new EU framework that will require brands and their suppliers to ensure the items they produce are sustainable from the drawing board to end-of-life disposal. Precise terms are still being defined and compliance will be phased in over the coming years.

“Traceability is an essential factor, but it’s not sufficient,’’ said Francesca Romana Rinaldi, a sustainability expert and director of the Monitor for Circular Fashion at SDA Bocconi School of Management. “It enables the implementation of sustainability and circularity.”

She said that any company that is not tracing their materials “doesn’t know their supply chain” and “could be also criticized for greenwashing.”

EU regulations and directives are moving toward full circularity of materials to include measures extending the life cycle of garments, accessories and footwear through repairs and end-of-life management, including recycling and upcycling, she said.

The EU is also phasing in restrictions on destroying unsold apparel, accessories and footwear produced by companies with more than 250 employees and more than 40 million euros ($46.8 million) in annual revenues.

From breeding to assembly The family-run fashion house was founded in 1927 by Salvatore Ferragamo in Florence, after his return from Hollywood, where he had established himself as shoemaker to the stars with clients including Marilyn Monroe and Judy Garland. Material scarcity during World War II pushed Ferragamo to experiment with alternatives, substituting wicker for leather and using cork for soles, the younger Ferragamo said.

In keeping with its origins, Ferragamo remains primarily a footwear and leather goods maker. Together, they comprised 86% of 2025 sales of 976.5 million euros ($1.1 billion).

Ferragamo launched its initiative on leather traceability with the calf leather used for its Fiamma bag, tracing it from breeding to assembly, the group announced in its 2024 annual report.

In 2025, Ferragamo enlisted tanneries supplying 80% of the hides it buys in a project to identify the country of origin of raw materials through supplier declarations. When including textiles such as cotton, silk and nylon, the company says 81% of its materials are certified under third-party sustainability standards.

“Today there is not one single solution, one single technological solution to trace the leather to the birth farm of the cows,’’ said Davide Triacca, Ferragamo’s sustainability director. “We got to that result through a very dedicated and consistent approach and today we are able to trace more than 80% of the entire leather that we supply and the vast majority of which comes from Europe.”

The EU does not require leather to be traceable. Sustainability experts underscore that approaches based on country-level mapping and supplier declarations do not establish a full chain of custody and instead reflect an early stage of traceability.

Ferragamo previously included a capsule collection with silky textiles made from orange fibers in 2017, one of its first research investments. More recently it used nylon from castor oil instead of fossil oil for a men’s tote bag, and its Back to Earth collection featured the brand’s trademark Hug handbag treated with vegetable dyes.

“Research keeps on going. It’s something that we’re doing all the time,'' Ferragamo said.

“We’re trying to find different ways of creating different materials. And sometimes the materials that we produce are not ready for market. But it doesn’t mean that we don’t experiment.”