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FABLETICS

Netfigo Verdict
on Fabletics

The activewear brand that proved celebrities and subscriptions can take on Lululemon. Fabletics sells $100-quality leggings at $50 prices through a membership model that Kate Hudson made cool. Revenue past $700 million with 100+ stores. The subscription model is genius for recurring revenue but generates complaints from people who forget to skip months. Lululemon still owns the premium market. Fabletics owns the "just as good for half the price" market. In a recession, that's actually the better position.

Founded

2013

HQ

El Segundo, CA

Total Raised

$500 million

Founder

Adam Goldenberg, Don Ressler & Kate Hudson

Status

Private — parent company TechStyle Fashion Group

THE ORIGIN STORY

Adam Goldenberg and Don Ressler (co-founders of TechStyle Fashion Group) partnered with actress Kate Hudson to launch Fabletics — a subscription-based activewear brand positioned against Lululemon at a fraction of the price. The membership model (pay monthly, get credits) created recurring revenue and predictable demand.

Kate Hudson wasn't just a spokesperson — she was actively involved in design and became the face of the brand.

WHAT THEY ACTUALLY DO

Subscription membership model. VIP members pay $59.95/month for credit toward activewear purchases.

Skip-the-month option available. Non-members pay higher retail prices.

Revenue from membership fees, product sales, and retail stores. Revenue exceeded $700 million in 2024.

THE PRODUCTS

Activewear (leggings, sports bras, tops), Fabletics Men, Swimwear, Loungewear, Fabletics Scrubs (medical), Accessories, VIP Membership Program, 100+ retail stores.

HOW THEY GREW

Retail expansion and brand diversification. Fabletics has opened 100+ retail stores nationwide — proving that DTC brands can succeed in physical retail.

Also launched Fabletics Men, expanded into swimwear and loungewear, and built Fabletics Scrubs. The TechStyle parent company also runs Savage X Fenty (Rihanna's lingerie brand) using the same membership model.

THE HARD PART

The subscription model creates customer complaints. Many members forget they're subscribed and get charged $59.95 monthly.

The FTC investigated subscription practices across the industry. Fabletics has had to improve cancellation processes and transparency.

Also: competing with Lululemon, Nike, and Athleta in a crowded activewear market.

WHO BACKED THEM

TechStyle Fashion Group (parent company), L Catterton, invested through parent company structure

Head-to-Head

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