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Kate Hudson helped grow Fabletics by pairing fashion-led activewear with a VIP membership model, then using customer insights to shape products and retail expansion. The company has since moved beyond online sales into stores and a wider range of apparel. Fabletics’ CEO reported about $1 billion in 2025 net revenue, 120 stores globally and more than 3 million active customers in a 2026 interview; those are company-reported figures, not independently audited here.
How did Kate Hudson grow Fabletics?
Fabletics’ growth was a sequence, not the result of membership alone: a clear product proposition, a membership system designed to build loyalty and understand shoppers, expansion from online sales into physical stores, and continued investment in product and technology. Hudson co-founded the company, and its leadership has described customer feedback and data as tools for making decisions about merchandise and store locations.
Start with fashion-led activewear
Fabletics says its idea began in 2013: combine fashion with activewear. Its current company story describes performance-oriented apparel with proprietary fabrics, bold colors and prints, and accessible pricing. This gave the brand a position beyond purely technical workout clothing. Its range has also expanded into lifestyle apparel, scrubs, and Yitty, its intimates, lounge and shapewear brand.
Use membership to learn about customers and encourage loyalty
In a 2017 Fast Company interview, Hudson described membership as a way to understand customers and build loyalty: “What the membership model allows us to do is really understand our customer and create brand loyalty, which is what we are finding it has created.” The article reported that Fabletics gathered preference information before purchases and continued collecting individual shopping behavior.
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Hudson also said the company had information about which items shoppers brought into fitting rooms and which they did not. She described using customer geography to inform store placement. These are her historical descriptions of the company’s approach, not independently verified evidence that any one data practice caused growth.
Carry the model into physical retail
Fabletics did not leave membership behind as it expanded beyond e-commerce. In its 2018 fifth-anniversary announcement, the company said members could use their benefits online and in stores, while nonmembers could shop at standard retail or join. At that point it reported 24 U.S. stores, more than $300 million in annual revenue and 1.4 million VIP members. Those figures are a 2018 company snapshot, not current metrics. The announcement also said more than 25% of VIP members had been referred by a friend.
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How does Fabletics’ VIP membership work as a business strategy?
In the company’s account, membership serves two connected purposes: it gives customers a way to shop with member benefits, and it gives Fabletics ongoing signals about preferences and shopping behavior. The company has said those insights inform personalized marketing and product decisions. In a 2026 interview, CEO Adam Goldenberg said member feedback gathered through events, surveys and focus groups helped lead to the development of the scrubs business.
Goldenberg also reported that roughly 95% of Fabletics’ revenue comes from members and nearly half of VIP members have been with the brand for more than two years. These figures, published in the American Image Awards 2026 Q&A, are company-reported. They suggest membership remains central to the business, but do not establish that membership alone explains the company’s performance.
How did Fabletics move from online sales to stores?
The company’s stated approach was to bring its online membership model into physical retail, where members could use benefits and other shoppers could choose between standard retail shopping and joining. Hudson’s 2017 comments also linked store placement to what the company knew about where its customers lived. The later store network shows the scale of the shift: Goldenberg reported 120 global stores in the 2026 interview, compared with the 24 U.S. stores Fabletics reported in 2018. The figures come from different dates and describe different geographic scopes.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is Fabletics’ scale and growth strategy now?
Goldenberg reported that Fabletics generated approximately $1 billion in net revenue in 2025, served more than 3 million active customers and had 120 stores globally. The interview describes company priorities that include product innovation, disciplined retail growth, international expansion, technology and AI. It says AI is used across product, visual merchandising and store operations, while membership data supports more personalized marketing. These are company statements reported in the 2026 Q&A, rather than independently audited operating data.
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A separate company announcement on August 12, 2026, said Fabletics planned to triple its international retail footprint during 2026, open about 20 international stores over the following 12 months, and add 25 U.S. stores. It named India, the UAE, Colombia, Peru and Central America among planned markets. These are announced plans, not confirmation that the openings have happened. That announcement described 2025 net revenue as exceeding $1 billion, while the Q&A called it approximately $1 billion; both formulations refer to company-reported 2025 results.
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