Fabletics, Kate Hudson's athleisure brand, is planning to open 75 new stores globally, quadrupling its footprint to 100 stores. "We are a digitally native company, so we've been able to really understand our customers — what they want, where they reside," Hudson told CNBC. "At a time when people are very nervous about retail, [our customers] still want the retail shopping experience."
Fabletics success has partially been attributed to having brand ambassadors with large social followings, such as Hudson and most recently Demi Lavato. A spokeswoman for Fabletics told CNBC the brand has "rapidly surpassed $300 million in annual revenue" after just five years in business, while its current store base has achieved same-store sales growth of 20 percent year-over-year. The subscription service plans to expand globally as well, with stores slated to open in the Philippines, with other international markets targeted in 2019.
Total Retail's Take: Adam Goldenberg, co-CEO of TechStyle Fashion Group, parent company of Fabletics, noted that the brand is aggressively working to expand its presence overseas. "We're looking at tier-A malls and lifestyle centers," Goldenberg told CNBC about Fabletics’ real estate strategy. "France is turning into a good market for us. We were almost too early [in expanding there], but now more and more countries are following suit." With athleisure being one of the fastest-growing retail segments right now, there's strong competition in the space, with Athleta, lululemon, and digital startup Outdoor Voices all vying with Fabletics for market share. As a digital-native brand and a subscription service, it will be interesting to see how Fabletics incorporates an increased brick-and-mortar presence into its business.