Fabletics

Fabletics is an American activewear brand co-founded by actress Kate Hudson, entrepreneur Adam Goldenberg, and Don Ressler in October 2013. Operating under TechStyle Fashion Group, Fabletics pioneered a subscription-based e-commerce model for athletic apparel, offering members significant discounts through a VIP membership program. The brand has grown to over 2 million active members and operates more than 85 retail stores across North America.

History

Foundation (2013)

Fabletics was launched in October 2013 as a joint venture between actress Kate Hudson and the co-founders of JustFab (later renamed TechStyle Fashion Group), Adam Goldenberg and Don Ressler. Hudson had been frustrated by the lack of affordable, stylish activewear options and partnered with TechStyle to create a brand that combined fashion-forward design with accessible pricing.

The company's innovative approach centered on a membership model: customers who signed up as VIP members would receive heavily discounted prices (typically 20-50% off retail) in exchange for a monthly membership fee. This model, already successful with JustFab's footwear business, proved highly effective in the activewear category.

Early Growth (2014-2016)

Within its first year, Fabletics achieved $25 million in revenue, significantly exceeding initial projections. The brand's success was driven by Kate Hudson's celebrity appeal, aggressive social media marketing, and the value proposition of the VIP membership model.

By 2015, Fabletics had reached $150 million in annual revenue and expanded its product line beyond leggings and sports bras to include full activewear collections for various activities including yoga, running, and gym training. The company also introduced a men's line, "Fabletics Men," targeting the growing male athleisure market.

In 2015, Fabletics opened its first brick-and-mortar retail stores, starting with locations in major malls. These stores served both as brand showcases and customer acquisition channels, allowing shoppers to try on products before committing to online membership.

Expansion and Evolution (2017-2020)

Between 2017 and 2020, Fabletics rapidly expanded its retail footprint, opening dozens of stores across the United States and entering the Canadian market. The company also enhanced its product offerings, introducing performance innovations like moisture-wicking fabrics, seamless construction, and size-inclusive ranges.

In 2017, the brand launched collaborations with athletes and influencers, creating special collections that drove buzz and sales. These partnerships helped position Fabletics as a serious player in the performance activewear space, competing with established brands like Lululemon and Athleta.

The company also refined its membership model in response to customer feedback and regulatory scrutiny. Improved transparency around billing, easier cancellation processes, and "skip the month" reminders addressed some early criticisms of the subscription model.

Pandemic Boom and Recent Developments (2020-2026)

The COVID-19 pandemic initially disrupted Fabletics' retail operations but ultimately accelerated its growth. With millions working from home and prioritizing comfortable clothing, demand for athleisure surged. Fabletics reported record online sales in 2020 and 2021.

In 2021, Fabletics announced a minority investment from L Catterton, a private equity firm backed by luxury goods conglomerate LVMH. While terms weren't disclosed, reports suggested the investment valued Fabletics at over $500 million. This capital injection funded international expansion and technology investments.

By 2023, Fabletics operated over 85 retail stores and had expanded to select international markets. The brand continued innovating with size-inclusive offerings (sizes XXS-4X), sustainable fabric initiatives, and enhanced personalization features on its e-commerce platform.

Business Model

VIP Membership Program

Fabletics' core business model centers on VIP membership. Members pay a monthly fee (typically $59.95 as of 2026) which can be used as store credit toward purchases. VIP members receive:

• 20-50% discounts on all products
• Early access to new collections and sales
• Free shipping on orders over a certain amount
• Exclusive member-only styles

Members can "skip the month" before being charged if they don't want to shop, and unused credits roll over. Non-members can purchase at full retail prices without membership.

Omnichannel Strategy

Fabletics operates both online and through physical retail stores. The stores serve multiple purposes: showcasing products, allowing customers to try on items before buying, converting in-store browsers to online VIP members, and processing returns. The omnichannel approach has proven effective, with store locations typically driving increased online sales in surrounding areas.

Products

Fabletics offers a comprehensive range of activewear and athleisure products:

• Women's: Leggings, sports bras, tops, shorts, jackets, swimwear, and accessories
• Men's: Joggers, shorts, t-shirts, hoodies, and performance wear
• Scrubs: Medical scrubs line launched for healthcare professionals
• Footwear: Athletic shoes and sneakers

Product collections are organized by activity (yoga, running, training) and updated monthly with new styles. The brand emphasizes inclusive sizing, offering extended size ranges across most product lines.

Marketing and Brand Positioning

Kate Hudson remains the face of Fabletics, appearing in advertising campaigns and maintaining active involvement in product development and brand strategy. Her celebrity status and authentic passion for fitness have been crucial to the brand's identity.

Fabletics invests heavily in digital marketing, social media influencer partnerships, and content marketing. The brand's marketing emphasizes body positivity, featuring diverse models and real customers rather than exclusively professional athletes or models.

The company positions itself as "premium quality at accessible prices," competing on value with mid-market brands while attempting to match the quality and style of premium activewear brands like Lululemon.

Controversies and Criticism

Membership Billing Practices

Fabletics has faced criticism and legal challenges regarding its VIP membership billing practices. Some customers reported being charged monthly fees without realizing they had enrolled in a subscription, or found it difficult to cancel memberships. The company has faced class-action lawsuits and complaints with the Better Business Bureau.

In response, Fabletics has improved transparency around membership terms, made cancellation processes easier, and implemented reminder emails before monthly charges. The company maintains that the vast majority of members understand and appreciate the program structure.

Quality and Sizing Consistency

Some customers have reported inconsistent sizing and quality across different product lines. Reviews frequently mention that sizing can vary between styles, making online ordering challenging. The company has worked to standardize sizing and improve quality control processes.

Sustainability Initiatives

Fabletics has increasingly focused on sustainability, launching initiatives including:

• Use of recycled materials in select product lines
• Commitment to reducing water usage in manufacturing
• Packaging reduction and use of recycled shipping materials
• Transparency reports on supply chain and manufacturing practices

However, as with many fast-fashion adjacent brands, questions remain about the environmental impact of the monthly collection model that encourages frequent purchases.

Market Position and Competition

Fabletics operates in the highly competitive activewear and athleisure market, competing with established brands like Lululemon, Nike, Athleta, and newer direct-to-consumer competitors like Gymshark and Outdoor Voices. The brand's membership model and Kate Hudson's involvement provide differentiation, though market saturation and changing consumer preferences present ongoing challenges.

As of 2023, Fabletics was estimated to generate over $500 million in annual revenue with more than 2 million active VIP members. While smaller than industry giants, the brand has carved out a significant position in the mid-market activewear segment.

References

1. Forbes: "How Kate Hudson Built A $250 Million Activewear Business" (2019)
2. Business of Fashion: "Inside Fabletics' Membership Model" (2021)
3. TechCrunch: "Fabletics raises funding from L Catterton" (2021)
4. WWD: "Fabletics reaches 2 million members" (2022)
5. Better Business Bureau: Fabletics customer reviews and complaints
6. Company press releases and annual reports (2013-2026)