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New York Post
49 days

Lululemon sues Costco over alleged sale of ‘dupes' copying $128 pants, $118 hoodies at fraction of price

1. Lululemon is suing Costco for selling unlicensed knockoff apparel. 2. The lawsuit claims Costco infringed on Lululemon's intellectual property. 3. Costco’s apparel is significantly cheaper than Lululemon’s products. 4. Lululemon seeks financial damages and a court order to stop sales. 5. Shares of Lululemon rose 2.2% after the news amid a poor year.

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FAQ

Why Bearish?

Lululemon’s lawsuit may indicate ongoing brand vulnerability and market pressures. Historical lawsuits have shown mixed benefits for brand image and stock performance.

How important is it?

The lawsuit reflects significant brand challenges impacting Lululemon's reputation. Given its recent financial forecast cut, this adds to investor concerns.

Why Short Term?

Initial market reactions to legal matters often impact stock prices quickly. The lawsuit reflects ongoing brand challenges which can affect short-term investor sentiment.

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