Kate Hudson’s Booming Fabletics Brand Stretches Beyond The U.S.

Los Angeles–based activewear brand Fabletics has emerged from 2025 with growing confidence that its long-running bet on membership, value and expanding physical retail is paying off.

And it has plans to grow in the U.S., Europe and the APAC region as its value-conscious leggings and apparel take an increasing slice of the ultra-competitive athleisure market.

The company closed the year with earnings up roughly 20% and surpassed $1 billion in revenue for the first time, a milestone that its management says puts it ahead of schedule on an ambitious five-year plan to double revenue and quadruple EBITDA.

Meeting with Meena Bhatia, president and chief operating officer of Fabletics at NRF’s Big Show in New York, she says the past year has validated a strategy that blends digital scale with an increasingly visible store presence.

“We set out a plan to double revenue and be four times EBITDA within five years, and 2025 put us ahead of that schedule,” she says, adding that the focus for 2026 will be on building momentum rather than recalibrating targets.

A major driver of that momentum has been store expansion. Fabletics opened 20 locations during 2025, bringing its global total to 120 stores, 114 of which are in the U.S. This year the company plans to open another 40 locations, evenly split between the U.S. and international markets.

Outside the U.S. Fabletics operations include two stores in Mexico, one in Guatemala, one in Dubai and a shop-in-shop partnership with department store Peek & Cloppenburg in Berlin. The German capital is also the company’s European headquarters, overseeing the U.K., German, Dutch and French markets. As international expansion accelerates, the company expects to rely increasingly on partners and franchising to extend its footprint, says Bhatia.

Fabletics Century City

But the most visible symbol of Fabletics’ retail ambitions is its newly opened flagship at the Century City mall in Los Angeles, the company’s hometown. The store carries its complete women’s and men’s assortments alongside its newer scrubs line. The Century City location is also intended as a community hub, hosting events and leveraging in-store technology such as smart fitting rooms that connect shoppers to their membership profiles and purchasing history.

For Bhatia, the flagship underscores how physical retail has become a strategic complement to the company’s roots, which originated in 2013 as a digitally native brand focused on affordable, fashion-forward activewear.

Of course it doesn’t hurt that Fabletics was co-founded by actress Kate Hudson, who works alongside entrepreneurs Adam Goldenberg, Don Ressler, and Ginger Ressler.

Fabletics built its business around a membership model that promised value and convenience at scale, with members accounting for more than 90% of sales. They benefit from preferential pricing, early access to product launches and direct communication, creating a level of engagement that the company says generates an enormous volume of insight.

That data has become even more powerful as the company expands its use of artificial intelligence. AI tools are deployed both behind the scenes and on the sales floor, helping to optimize supply chains, promotions and assortments, while also supporting in-store training and staffing decisions.

Bhatia describes Fabletics as “digital forward by DNA,” noting that even its physical stores are designed to operate as data-rich environments rather than as traditional retail boxes.

Fabletics Agile On Tariffs

The company has also shown a willingness to adapt quickly when external conditions shift. Recent tariffs forced adjustments to parts of its supply chain, but Bhatia says adaptation is one of Fabletics’ core strengths. “We are a very agile company,” she says, pointing to diversified sourcing and rapid decision-making.

Product expansion has been another important growth lever, a role Kate Hudson is charged with leading.

“Around two years ago, we launched our scrubs line after sustained feedback from members, particularly those working in healthcare. What began as an experiment has since become a strong sales channel, broadening the brand’s relevance beyond fitness and athleisure,” Bhatia adds.

At the same time, the company continues to emphasize its founding belief that high-quality leggings should not cost $100, she insists, adding that while Fabletics does have a wholesale business, it remains small and largely opportunistic, with the company preferring to retain control over customer relationships through its own channels.

Growth initiatives for 2026 will focus on new product lines, refreshed styles and expanded collaborations, including an NFL tie-up with Cincinnati Bengals’ star wide receiver Ja’Marr Chase, who became the brand’s first professional athlete ambassador and helped launch a collection under the tagline ‘Chasing No One’’.

He joins entertainer Kevin Hart as one of the faces of Fabletics Men, reflecting the brand’s ambition to broaden its cultural footprint and Bhatia says more collaborations could follow, reflecting a broader ambition to position Fabletics not just as an activewear brand but as a lifestyle company.