Fabletics Plans to Open 75 New Stores in Global Push

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.