
They returned used toilets and dirty rugs to Costco. Then came the backlash.
Every week, her heels click up and down the warehouse aisles as she hunts for new deals, stocks up on groceries and grazes on samples.
In nearly two years, Juarez never returned a purchase, even when her newly purchased rug began to fray. But then her 2-year-old daughter smuggled a bucket of slime into the living room and slopped the blue goo on her ivory-colored rug.
Juarez was about to chuck the stained rug when a friend urged her to take it back instead. 'I was like, girl, are you trying to embarrass me?' replied Juarez, a 29-year-old mother of two and social media influencer from Dallas.
But then she got to thinking. 'You know what? I have been spending thousands of dollars. I just bought my couches from Costco, too. I don't think $150 will hurt them.'
She was nervous as she approached the return counter but minutes later, Juarez walked out of the warehouse with a full refund. The next day, she bought a replacement rug from Costco.
'After that, I am going to keep my membership forever,' she said. 'I am not sure if it's out of guilt or out of amazement.'
From low prices on quality products to the wildly popular $1.50 hot dog-and-soda combo, Costco knows how to worm its way into shoppers' hearts and pantries.
One of its most popular perks is the no-questions-asked (or few questions asked) "risk-free 100% satisfaction guarantee" return policy that fills shoppers with buying confidence and their carts with splurges. Costco gives its customers who pay annual membership fees of $65 to $130 an unlimited grace period to return most purchases for a full refund.
But the liberal policy has become a touchy subject as eyebrow-raising returns go viral, from toilets still sloshing with dirty water to Christmas trees returned after Christmas. Shoppers regularly square off online over what should – and should not be – returned. The online fury reached a fever pitch in 2024 when a Seattle woman got a full refund for a 2 ½-year-old couch because she no longer cared for the color.
Rampant abuse sets off fears that the warehouse club will roll back its generous return policy, said Addison Marriott.
Marriott, 24, who works in advertising, took some heat when she and her husband returned an air conditioning unit they bought to weather the sweltering summer months in their one-bedroom Los Angeles apartment and then posted about it on TikTok: "We broke married kids love your return policy."
'People were nervous that if the video blew up, Costco would find out and restrict their return policies,' Marriott said.
Parker Seidel, a 26-year-old YouTube creator from Orange County, got blowback when he tested the limits of Costco's return policy with a series of stunts, getting his money back for a half-eaten chicken bake and three-week-old flowers he never put in water. Next up: Returning a Vincent Van Gogh Sunflowers Lego set after completing it.
'I was getting so much hate. I was like, 'Oh my god, I was not expecting this at all,'' Seidel said.
For Juarez, what she calls 'carpetgate' blew up on TikTok, where she has 2.4 million followers. 'You are so classless,' one person commented. 'Girl what, your kids stained (the rug) and now you are making it Costco's problem?'
'You are paying for the perks of having products that you can buy and products that you can return,' she told USA TODAY. 'It's a really good way that they hook you in. I am sure that they make way more money off of us purchasing stuff than they lose from returns.'
Costco did not respond to requests for comment on its famously lenient return policy but David and Susan Schwartz, the husband-and-wife team behind the 2023 book, 'The Joy of Costco: A Treasure Hunt from A to Z,' say it dates back to the company's origins.
When they interviewed Jim Sinegal, the Costco co-founder and former CEO told them about a call from a store manager asking if the store should let someone return an unusual and expensive item. 'Jim Sinegal said, 'What are you calling me for?'' Susan Schwartz said. ''Take it back.' And they did.'
That laid-back attitude has stood the test of time and industry headwinds – with an exception here and there. In 2007, Costco limited most consumer-electronics returns to 90 days after returns of flat-panel TVs squeezed profit margins.
"Our view is, even with these changes, we still have the best return policy in the retail industry," former chief operating officer Richard Galanti told the Wall Street Journal at the time.
A lenient return policy is even more important for today's inflation-weary shoppers, said Anna Brennan, principal analyst for club and specialty retailers at marketing data and analytics firm Kantar.
'It all ties back to reducing some of that stress and risk on the shopper and members' part, especially in an environment like the one we're in today, where every purchase feels particularly weighted,' Brennan said. 'I think that really helps the member make some purchases maybe they wouldn't have otherwise.'
How Costco hooks you Come for the hot dogs, stay for the gold bars
That was the case for Troy Pavlek, a 31-year-old software developer from Edmonton, Alberta.
A Costco executive member since 2012, he says he pays to shop at Costco for 'the confidence that anything you buy in the store, the store will stand behind or your money back' and he has rarely had to return anything.
While remodeling his house, he splurged on two $900 toilets. When the manufacturer refused to replace a cracked plastic piece that joined the lid to the toilet on one, he returned the other one unused and still in the box — minus the lid.
According to Ayelet Fishbach, professor of behavioral science and marketing at the University of Chicago Booth School of Business, an ethical dilemma drives the spirited controversy over Costco returns: 'Should people follow the letter of the rule or the spirit behind it?'
Fishbach got an inkling of where most people stood when she surveyed hundreds of consumers on whether they would return lightly worn clothing. About 40% said yes, but that number dropped significantly when they were asked if they would do it repeatedly.
'It seems many people are comfortable occasionally bending the spirit of a policy, and may even find it amusing, but hesitate to make a habit of it,' she said.
Take Susana Rodriguez, a mother of seven from Henderson, Nevada. She returned a canopy used by her small business, Cocos Frios El Primo, after the wind tore it apart in less than two months.
But Rodriguez, 45, said she draws a line for returns after a certain amount of time. Costco told her she could return a TV that was a few years old. 'I didn't do it," she said. "It lasted what it lasted.'
Costco employees on the returns front lines have seen it all, from dirty and stained mattresses to half-eaten trays of cookies. Then there are the shoppers who rent from Costco. Televisions bought before the Super Bowl and returned right after. Chairs and tables purchased for an event and wheeled in the next day.
A couple of the staffers spoke with USA TODAY on the condition of anonymity because they feared they could lose their jobs. While they wish people wouldn't take advantage, they say the return policy does exactly what it was intended to do: It breeds loyalty, drives sales and entices new members.
'It's great because it gives members peace of mind,' one Illinois employee told USA TODAY. 'I'm sure that works in our favor all the time, because people buy things and then they decide they love them and it's worth keeping.'
While most returns are accepted, some repeat offenders get flagged, a Connecticut employee said. One shopper kept returning lighting fixtures purchased nearly a decade ago as she remodeled her home, lightbulbs and all. After a few months, the store turned her away.
'That is pretty common,' the employee said. 'People will remodel their homes and they will literally pull up their flooring and return it.'
In rare cases, when the return policy is 'really abused,' Costco revokes memberships, the employee said. But for most shoppers, she said, 'we'll take anything.'
The store tries to donate as much as it can, she said, but some returns go to waste. Returned food that needs to be temperature controlled, for instance, gets tossed in the trash. She estimates her warehouse throws away 'a few hundred dollars' worth of food every day.
But the policy usually benefits Costco, the employee said. She recalled one instance where a customer was torn between a Costco vacuum and a cheaper model from Macy's.
'I said, 'Well, what if you have to return it? Are they going to accept your vacuum return six months down the road? Probably not. But we will.' So she spent the extra couple hundred dollars and got it from us,' the employee said.
Increasingly, retailers are under pressure to ditch anything-goes policies as fraud and abuse erode profit margins.
Of the $685 billion in merchandise returned in 2024, $103 billion was lost to fraudulent and abusive returns and claims, according to a recent report from Appriss Retail.
In 2018, L.L. Bean traded in its lifetime return policy for a one-year limit, noting that some customers expected returns for heavily worn products or items purchased at yard sales. Duluth Trading Company made a similar switch in 2019.
Retailers have also begun charging restocking fees or for return shipping to recoup losses.
Not Costco. It can afford to absorb the losses because it relies on a membership business model, analysts say. Last year it earned $4.8 billion in revenue from membership fees alone.
Returns are an important part of keeping those members happy, said USC Marshall School of Business marketing professor Kristin Diehl. Research shows that shoppers often base purchases on how hard or easy they think it will be to return something.
More than half of consumers decided not to buy from retailers due to restrictive return policies and almost a third of consumers stopped shopping at stores due to negative return experiences, according to a recent report from Appriss Retail. On the other hand, 7 out of 10 consumers say they made at least one additional purchase because of a positive return experience.
Costco members are less likely to abuse the privilege because returns are tied to their membership and they don't want to get blacklisted, Diehl said. They also consider themselves part of the Costco community.
The return policy fosters a sense of belonging and good will, something Costco has in bulk. It's also 'great word of mouth,' said Neil Saunders, a retail analyst at the research and analytics firm GlobalData.
That's why it's here to stay, he said. Whatever "miniscule cost' from return policy abuse is worth it to Costco.

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Business Wire
26 minutes ago
- Business Wire
Sonder Holdings Inc. Announces Fourth Quarter and Full Year 2024 Financial Results
SAN FRANCISCO--(BUSINESS WIRE)--Sonder Holdings Inc. (Nasdaq: SOND) ('Sonder' or the 'Company'), a leading global brand of premium, design-forward apartments and intimate boutique hotels serving the modern traveler, today announced its fourth quarter and full year 2024 financial results and filed the related Annual Report on Form 10-K, which can be found on the Company's website at Fourth Quarter 2024 Financial Highlights 1 RevPAR was $180, a 19% increase year-over-year Occupancy Rate was 85%, a three percentage point increase year-over-year Bookable Nights were 897,000, an 18% decrease year-over-year, driven by the Portfolio Optimization Program (described further below) Revenue was $161 million, a 2% decrease year-over-year Net Income was $31 million, a 128% increase year-over-year, including a $(92) million change in fair value of the forward contract, related to the preferred stock transaction completed on August 13, 2024 Adjusted EBITDA 2 was $(20) million, a 51% increase year-over-year Adjusted EBITDAR 2 was $50 million, a 20% increase year-over-year Cash Used In Operating Activities was $39 million, a 1% increase year-over-year Adjusted Free Cash Flow 2 was $(26) million, a 30% increase year-over-year Total Cash, Cash Equivalents and Restricted Cash was $72 million, which included $51 million of restricted cash as of December 31, 2024 Live Units were approximately 9,900 as of December 31, 2024 Total Portfolio was approximately 10,700 as of December 31, 2024 Full Year 2024 Financial Highlights RevPAR was $159, a 5% increase year-over-year Occupancy Rate was 81%, a one percentage point decrease year-over-year Bookable Nights were 3,911,000, a 2% decrease year-over-year, driven by the Portfolio Optimization Program (described further below) Revenue was $621 million, a 3% increase year-over-year Net Loss was $224 million, a 24% decrease year-over-year, including a $93 million lease adjustment gains, net, a $84 million loss on preferred stock issuance, and a $29 million change in fair value of the forward contract, each related to the preferred stock transaction completed on August 13, 2024 for $43 million of new convertible preferred equity Adjusted EBITDA 2 was $(105) million, a 38% increase year-over-year Adjusted EBITDAR 2 was $196 million, a 30% increase year-over-year Cash Used in Operating Activities was $129 million, a 17% increase year-over-year Adjusted Free Cash Flow 2 was $(90) million, a 25% increase year-over-year Long-Term Strategic Licensing Agreement with Marriott International Sonder entered into a long-term strategic licensing agreement with Marriott International, Inc. (NASDAQ: MAR) ('Marriott') in August 2024 and completed the full Marriott integration in the second quarter of 2025. As of June 2025, all Sonder properties are available for booking on Marriott's digital channels and platform, including and the Marriott Bonvoy® mobile app under the new 'Sonder by Marriott Bonvoy' collection. Sonder's properties also participate in the Marriott Bonvoy® travel platform. Portfolio Optimization Program In November 2023, Sonder implemented a portfolio optimization program to mitigate losses related to certain underperforming properties and to assess the Company's portfolio of rents relative to current operations and existing market rents. As of December 31, 2024, Sonder signed agreements to exit or reduce rent for approximately 110 buildings, or 4,500 units, as part of the portfolio optimization program. Of the approximately 85 buildings, or 3,300 units, with finalized exit agreements, Sonder had exited approximately 80 buildings, or 3,200 units, as of December 31, 2024. As of June 30, 2025, all 85 buildings, or 3,300 units with finalized exit agreements were exited. About Sonder Sonder (NASDAQ: SOND) is a leading global brand of premium, design-forward apartments and intimate boutique hotels serving the modern traveler. Launched in 2014, Sonder offers inspiring, thoughtfully designed accommodations and innovative, tech-enabled service combined into one seamless experience. Sonder properties are found in prime locations in 41 cities, spanning nine countries, and three continents. To learn more, visit or follow Sonder on Instagram, LinkedIn or X. Download the Sonder app on Apple or Google Play. 1 $ figures represent metrics for the three months ended December 31, 2024, except where otherwise noted. % figures represent year-over-year growth for the three months ended December 31, 2024 compared to the three months ended December 31, 2023. 2 Adjusted EBITDA, Adjusted EBITDAR, and Adjusted Free Cash Flow are non-GAAP financial measures. See 'Non-GAAP Financial Measures' for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures December 31, 2023 Assets Current assets: Cash and cash equivalents $ 20,786 $ 95,763 Restricted cash 51,268 40,734 Total cash, cash equivalents and restricted cash 72,054 136,497 Accounts receivable, net 13,918 7,999 Prepaid expenses 4,141 5,366 Other current assets 9,733 11,345 Total current assets 99,846 161,207 Property and equipment, net 5,933 22,775 Operating lease right-of-use 'ROU' assets 1,013,854 1,322,135 Other non-current assets 17,544 15,150 Total assets $ 1,137,177 $ 1,521,267 Liabilities and stockholders' deficit Current liabilities: Accounts payable $ 33,724 $ 23,560 Accrued liabilities 32,621 36,040 Taxes payable 22,224 14,005 Other current liabilities 5,513 2,586 Deferred revenue 71,729 61,971 Current portion of long-term debt, net 1,000 168,710 Current operating lease liabilities 171,736 199,364 Total current liabilities 338,547 506,236 Non-current operating lease liabilities 1,009,169 1,389,580 Long-term debt, net 217,236 1,500 Other non-current liabilities 8,113 652 Total liabilities 1,573,065 1,897,968 Mezzanine equity: Series A redeemable convertible preferred stock 162,907 — Stockholders' deficit: Common stock 1 1 Additional paid-in capital 977,112 977,503 Cumulative translation adjustment 7,360 4,976 Accumulated deficit (1,583,268 ) (1,359,181 ) Total stockholders' deficit (598,795 ) (376,701 ) Total liabilities and stockholders' deficit $ 1,137,177 $ 1,521,267 Expand SONDER HOLDINGS INC. AND SUBSIDIARIES (in thousands, except share data) Three months ended December 31, Year ended December 31, 2024 2023 2024 2023 Revenue $ 161,078 $ 164,264 $ 621,272 $ 602,066 Costs and operating expenses: Cost of revenue (excluding depreciation and amortization) 89,237 102,951 377,243 392,898 Operations and support 42,660 58,487 184,343 212,913 General and administrative 40,102 19,145 123,390 112,082 Research and development 3,031 5,076 16,522 22,365 Sales and marketing 21,135 23,672 84,248 78,566 Impairment losses 13,164 58,078 13,164 59,165 Integration costs 1,066 — 1,066 — Restructuring and other charges 17 — 3,913 2,119 Total costs and operating expenses 210,412 267,409 803,889 880,108 Loss from operations (49,334 ) (103,145 ) (182,617 ) (278,042 ) Interest expense, net 9,618 7,124 34,213 25,409 Change in fair value of SPAC Warrants (94 ) 59 (87 ) (615 ) Change in fair value of Earn Out Liability (25 ) (230 ) (30 ) (2,372 ) Lease adjustment (gains), net 2,404 (1,569 ) (93,175 ) (10,145 ) Loss on preferred stock issuance — — 83,812 — Change in fair value of forward contract (91,955 ) — 28,652 — Other expense (income), net 1,947 4,520 (9,909 ) 6,282 Total non-operating (income) expense, net (78,105 ) 9,904 43,476 18,559 Income (loss) before income taxes 28,771 (113,049 ) (226,093 ) (296,601 ) Benefit for income taxes (2,632 ) (1,060 ) (2,006 ) (933 ) Net income (loss) $ 31,403 $ (111,989 ) $ (224,087 ) $ (295,668 ) Other comprehensive income (loss): Net income (loss) $ 31,403 $ (111,989 ) $ (224,087 ) $ (295,668 ) Change in foreign currency translation adjustment 7,017 (4,801 ) 2,384 (8,050 ) Comprehensive income (loss) $ 38,420 $ (116,790 ) $ (221,703 ) $ (303,718 ) Expand SONDER HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the years ended December 31, 2024 2023 Cash flows from operating activities: Net loss $ (224,087 ) $ (295,668 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 16,989 22,147 Stock-based compensation 8,005 28,494 Amortization of operating lease ROU assets 171,078 194,863 Impairment losses 13,164 59,165 Lease adjustment gains, net (93,175 ) (10,145 ) Credit loss expense 9,170 1,083 (Gain) loss on foreign exchange (1,947 ) (5,691 ) Capitalization of paid-in-kind interest on long-term debt 29,383 26,934 Amortization of debt issuance costs 129 12 Amortization of debt discounts 3,345 2,557 Change in fair value of SPAC Warrants (87 ) (615 ) Change in fair value of Earn Out Liability (30 ) (2,372 ) Change in fair value of forward contracts 28,652 — Loss on preferred stock issuance 83,812 — Other operating activities 1,658 40 Changes in: Accounts receivable (15,340 ) (2,591 ) Prepaid expenses 1,161 3,657 Other current and non-current assets (2,453 ) (636 ) Accounts payable 11,558 6,810 Accrued liabilities (4,646 ) 3,839 Taxes payable 8,907 (727 ) Deferred revenue 10,227 20,068 Operating lease ROU assets and operating lease liabilities, net (186,750 ) (162,327 ) Other current and non-current liabilities 2,055 199 Net cash used in operating activities (129,222 ) (110,904 ) Cash flows from investing activities: Purchase of property and equipment (3,107 ) (10,637 ) Proceeds on the disposition of property and equipment 1,558 71 Proceeds of Key Money Investment 7,500 — Capitalization of internal-use software (222 ) (1,796 ) Net cash provided by (used in) investing activities 5,729 (12,362 ) Cash flows from financing activities: Repayment of debt and related fees (1,011 ) (35,240 ) Proceeds from issuance of debt 20,000 3,000 Payment of issuance costs (2,438 ) — Proceeds from preferred stock issuance 43,300 — Proceeds from exercise of stock options and common stock warrants — 8 Net cash provided by (used in) financing activities 59,851 (32,232 ) Effects of foreign exchange on cash (801 ) 2,809 Net change in cash, cash equivalents, and restricted cash (64,443 ) (152,689 ) Cash, cash equivalents, and restricted cash at beginning of year 136,497 289,186 Cash, cash equivalents, and restricted cash at end of year $ 72,054 $ 136,497 Expand SONDER HOLDINGS INC. AND SUBSIDIARIES NON-GAAP FINANCIAL INFORMATION (2) Three months ended December 31, Year ended December 31, (in thousands) 2024 2023 2024 2023 Cash used in operating activities $ (38,771 ) $ (38,367 ) $ (129,222 ) $ (110,904 ) Cash provided by (used in) investing activities 7,824 74 5,729 (12,362 ) FCF, including cash received from Key Money investment and cash paid for lease terminations, restructuring, and professional fees (30,947 ) (38,293 ) (123,493 ) (123,266 ) Cash received from Key Money investment (7,500 ) — (7,500 ) — Cash paid for non-recurring professional fees 11,266 — 22,566 — Cash paid for restructuring costs 1,398 172 4,363 2,322 Cash paid for lease termination costs 164 1,343 14,499 1,343 Cash paid for integration costs 52 — 52 — Adjusted FCF $ (25,567 ) $ (36,778 ) $ (89,513 ) $ (119,601 ) Expand Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Loss to Adjusted EBITDA Three months ended December 31, Year ended December 31, (in thousands) 2024 2023 2024 2023 Net loss $ 31,403 $ (111,989 ) $ (224,087 ) $ (295,668 ) Interest expense, net 9,618 7,124 34,213 25,409 Benefit for income taxes (2,632 ) (1,060 ) (2,006 ) (933 ) Depreciation and amortization expense 3,639 3,239 16,989 22,147 EBITDA 42,028 (102,686 ) (174,891 ) (249,045 ) Stock-based compensation 1,603 4,512 8,005 28,494 Lease adjustment (gains), net 2,404 (1,569 ) (93,175 ) (10,145 ) Impairment loss 13,164 58,078 13,164 59,165 Loss on preferred stock issuance (1) — — 83,812 — Change in fair value of forward contract (91,955 ) — 28,652 — Restructuring and other related charges 17 — 3,913 2,119 Non-recurring professional fees 11,366 — 23,971 — Integration costs 1,066 — 1,066 — Adjusted EBITDA $ (20,307 ) $ (41,665 ) $ (105,483 ) $ (169,412 ) Expand (1) Includes $1.3 million associated with the preferred stock participation right. (2) See Non-GAAP Financial Measures section for definitions of the Company's Non-GAAP financial measures. Expand Definitions Key Money Key Money ('Key Money') represents $7.5 million received on April 11, 2025 from Marriott, completing the $15.0 million investment from Marriott under the Marriott Agreement. RevPAR Revenue Per Available Room ('RevPAR') represents the average revenue earned per available night and can be calculated either by dividing revenue by Bookable Nights, or by multiplying Average Daily Rate by Occupancy Rate. Average Daily Rate represents the average revenue earned per night occupied and is calculated as Revenue divided by Occupied Nights. Occupancy Rate is calculated as Occupied Nights divided by Bookable Nights. Bookable Nights represent the total number of nights available for stays across all Live Units. This excludes nights lost to full building closures of greater than 30 nights. Occupied Nights represent the total number of nights occupied across all Live Units. Live Units & Total Portfolio Total Portfolio consists of Live Units and Contracted Units. Live Units are defined as units which are available for guests to book. Contracted Units are units for which Sonder has signed real estate contracts, but are not yet available for guests to book. Non-GAAP Financial Measures Adjusted EBITDA Adjusted EBITDA is defined as net income (loss) as adjusted to eliminate the impact of net interest expense, provision (benefit) for income taxes, depreciation and amortization expense, and certain other items as indicated. The exclusion of these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. The Company believes Adjusted EBITDA is meaningful to investors as it is the primary operating performance measure that the Company focuses on internally to evaluate its core operating performance. Adjusted EBITDA provides a consistent basis for comparison across reporting periods by excluding interest, taxes, depreciation and amortization, and certain one-time, non-recurring or non-operational items, such as lease adjustment gains, net, restructuring and other related charges, and professional fees related to discrete projects such as fees associated with the integration in connection with the strategic licensing agreement with Marriott and restatement activities. It serves as a key measure for the Company to align its financial performance with its internal financial planning and analysis. Adjusted EBITDAR Adjusted EBITDAR is defined as Adjusted EBITDA adjusted for operating lease related rent charges. The Company believes Adjusted EBITDAR is meaningful to investors as it is an operating performance measure that further enables the Company to assess its operating performance independent of operating leases, offering insights into its cash flow and performance. Adjusted Free Cash Flow Adjusted Free Cash Flow ('Adjusted FCF') is defined as cash used in operating activities plus cash provided by (used in) investing activities, excluding the impact of the Key Money investment, lease terminations, restructuring, and non-recurring professional fee charges related to non-operational activities. The most directly comparable GAAP financial measures are cash used in operating activities when combined with cash provided by (used in) investing activities. The Company's near-term focus is to reach sustainable positive Adjusted FCF as described in its Cash Flow Positive Plan in the Annual Report on Form 10-K. The Company believes Adjusted FCF is meaningful to investors as it is the primary liquidity measure that the Company focuses on internally to evaluate its progress towards the objectives outlined in its Cash Flow Positive Plan. The Company believes that achieving its goals around this measure will put it on a path to financial sustainability and will help fund its future growth. In addition, Adjusted FCF may not provide a complete understanding of the Company's cash flow as a whole. As such, this measure should be reviewed in conjunction with the Company's GAAP cash flow. Presentation of these measures are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon current expectations or beliefs, as well as assumptions about future events. Forward-looking statements include all statements that are not historical facts and can generally be identified by terms such as 'could,' "estimate," 'expect,' 'intend,' 'may,' 'plan,' "potentially," or 'will' or similar expressions and the negatives of those terms. These statements include, but are not limited to, statements relating to the Company's financial performance, the numbers of units and other metrics, the portfolio optimization program and other cost optimization measures, operational and strategic initiatives, the Company's integration efforts under its long-term strategic licensing agreement with Marriott, and information concerning possible or assumed future financial or operating results and measures. These forward-looking statements are not guarantees of future performance, conditions or results. Actual results could differ materially from those expressed in or implied by the forward-looking statements due to a number of risks and uncertainties, including the risks and uncertainties described in the Company's reports filed with the Securities and Exchange Commission, and under the heading 'Risk Factors' in its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available at The forward-looking statements contained herein are only as of the date of this press release. Except as required by law, the Company does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this press release.


USA Today
an hour ago
- USA Today
See how Lululemon items compare to Costco 'dupes' claimed in lawsuit
Luxury athletic wear maker Lululemon is suing warehouse giant Costco over alleged "knockoffs" or "dupes" ‒ cheaper copies of popular items ‒ sold by the warehouse giant. Lululemon filed the lawsuit in the U.S. District Court in Central California on June 27. It alleges that Costco's in-house Kirkland Signature brand infringed on its trademarks, trade dress and design patents, and caused "significant harm" to its brand. The company is seeking unspecified monetary damages for lost profits and a halt to Costco's production and marketing of the copied items, which allegedly include hoodies, jackets and pants. Here's a closer look at the Lululemon clothing items in question: The Lululemon items cited in the lawsuit include "Scuba" hoodies, "Define" jackets, and "ABC" pants. The company alleges that an "ordinary observer" would not be able to tell the difference between the two brands in the lawsuit. Costco's products cost significantly less than Lululemon clothing. A Lululemon 'Scuba' hoodie sells for $99 to $118 on the company's website, the lawsuit says, while the Costco item costs $8. The "Scuba": An oversized half-zip hoodie features finger holes in the sleeves and a kangaroo pocket in the front. It retails between $99 and $118 on Lululemon's website, and its alleged Costco "dupe" called the "Danskin Half-Zip Pullover" retails for $8. The "Define" jacket: A full-zip jacket features shaping lines on the front and back to accentuate the wearer's waist. It retails at $128 on Lululemon's website, and the alleged Costco "dupes" called "Jockey Ladies Yoga Jacket" or "Spyder Women's Yoga Jacket" retail for $22. The "ABC" men's pants: Features five pockets, ornamental lines and a four-direction stretch. They retail at $128 on Lululemon's website, and its alleged Costco "dupe" is called the "Kirkland 5 Pocket Performance Pant" retails at $10. Here's what the court documents show: In addition to the articles of clothing, Lululemon alleges that Costco stole its "Tidewater Teal" color, a popular color offered among several of Lululemon's clothing items. What is Costco's Kirkland brand? Costco's Kirkland Signature brand is its flagship private-label brand launched in 1995, named after Kirkland, Washington, where its headquarters were formerly located. According to the Wall Street Journal, Kirkland items account for about a third of Costco's revenue and brought in $86 billion last year. Though Costco sells name-brand items, it frequently features a Kirkland-branded item next to the name-brand at a lower cost, similar to Walmart's "Great Value" line. The lawsuit stated that Costco is "known to use manufacturers of popular branded products for its own KIRKLAND® 'private label' products" and that the practice could lead consumers to believe Kirkland products are made by the same suppliers of the original items. The lawsuit claims Costco "does not dispel this ambiguity." Reporters for this story reached out to both companies but did not receive a response by the time of initial publication. In previously reported stories a Lululemon spokesperson told USA TODAY "As 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," Note: USA TODAY is mentioned once in the lawsuit as covering Lululemon products but is not an involved party in the lawsuit. CONTRIBUTING Greta Cross, George Petras


TechCrunch
2 hours ago
- TechCrunch
YouTube sees a rise in ad revenue to reach nearly $10 billion
YouTube continues to lead in the streaming market, with advertising revenue increasing by 13% year over year, according to Alphabet, Google's parent company, in its second-quarter earnings report released on Wednesday. This growth brings YouTube's total ad revenue to $9.8 billion, up from $8.7 billion in the same period last year. The company slightly exceeded analyst expectations, which had forecast YouTube's Q2 ad revenue to be around $9.6 billion. For years, YouTube has been striving to capture a larger share of television ad dollars, especially as its popularity on TV has grown, accounting for a significant portion of its viewership. A recent report from Nielsen indicated that YouTube held the largest share of TV viewing for three consecutive months, representing 12.4% of the total audience time spent watching television. In response to YouTube's success, rival streaming services, such as HBO Max and Amazon Prime Video, have ramped up their advertising strategies, increasing ad placements to stimulate growth. Additionally, Netflix is emerging as a key competitor to YouTube, particularly after it announced its intentions to double its advertising revenue within the year during the company's earnings call last week. Although Netflix has not publicly disclosed its ad revenue figures, an analyst from Madison & Wall estimates that it's around $3 billion. Overall, Alphabet reported strong results, with total revenue of $96.4 billion in the second quarter, representing a 13% year-over-year increase.