Fabletics is turning its stores into membership growth hubs

Fabletics currently has more than 3 million active customers. About 90% of them — 2.7 million — are VIP members, up from 2.4 million last year. What’s more, 2025 marked the first time Fabletics hit $1 billion in revenue and expanded into wholesale. The company also achieved 18% year-over-year revenue growth in 2025. Now, it’s on track to open roughly 40 more stores (half in the U.S. and half internationally) in 2026, Bhatia shared.

Fabletics, which counts actress Kate Hudson as a co-founder, offers items like tees and sweatpants to non-members, à la carte. But today, members are responsible for more than 95% of revenue, the company told Modern Retail. Nearly half of the brand’s members have been with Fabletics for more than two years. One of the biggest selling points is member credits, which can be redeemed for a two-piece outfit or an item up to $100.

“About half of our members tell us we’re their favorite brand,” Bhatia said. “We have amazing brand loyalty.”

In-store discovery

Fabletics’ retail stores are fueling growth across both the business and its membership program.

While most of Fabletics’ business is online, its retail stores — the majority of which are in the U.S. — are seeing double-digit comp increases, Bhatia shared. Fabletics has stores in 36 states, including California, Ohio and Wisconsin. The stores carry a large amount of merchandise, and they tend to attract people who are unfamiliar with the brand. “The store is exposing our brand to people who haven’t touched or seen [the merchandise] before,” Bhatia explained.

Bhatia added that existing e-commerce customers also use the stores to “come in and see things in person.” “We see four times in value from an omnichannel shopper, versus a regular one-channel shopper,” she said. But, she added, “We have a bit more discovery happening [in stores]” because of the tactile nature of the merchandise. It’s that discovery that prompts half of store-goers to pay some $70 a month for a VIP membership.

The VIP membership, Bhatia said, “is a big part of our marketing because it’s a big part of how we acquire [customers].” The stores carry information about the VIP program, and store associates are trained to talk about the program.

Artificial intelligence plays a role in helping people sign up for a membership, too. Store employees are given different scripts to “deliver their pitch for different parts of the customer journey,” Bhatia shared. Then, “AI is giving them feedback on how to improve it,” she said. The AI helps associates explain everything from new products to how the membership program works. One common question the brand gets is about whether members have to place an order every month. The answer: Members can skip a month if they do so between the 1st and the 5th of that month.

Fabletics also caters to VIP members through its proprietary tech stack, Bhatia said. “When they walk into the store, we can identify them,” she explained. “We know what they loved online, and our store associates can make recommendations to them.” That sense of personalization keeps these VIP members coming back, Bhatia said.

As 2026 gets underway, Fabletics’ VIP members are shaping the brand’s footprint. For instance, in the U.S., Fabletics looks at where it has a strong VIP base to help determine where it should open a new location. “What we’ve found is, when you have that initial momentum from customers who love the brand, that sets up a retail store for success,” Bhatia said.

Growth ahead in 2026

Fabletics is trying to grow its customer base at a challenging time for the activewear space. There, everyone from Vuori to Athleta to Lululemon is jockeying for market share. But Kassi Socha, senior director analyst at Gartner, believes Fabletics’ VIP membership is “their brand differentiator.”

“Some retailers show you the discount on the tag and automatically offer it to you at checkout,” she said. “But Fabletics reserves [most] discounts for members only, so the benefit of their model is easier customer data acquisition.” In fact, the VIP membership gives Fabletics “a treasure trove of customer data,” Socha said. “Their expanding store footprint will only accelerate this.”

High costs, though, could be one challenge in maintaining a large membership program like Fabletics’, Socha said. “The need for re-engagement and acquisition is costly, so it takes a sizable marketing investment to keep that funnel going,” she said.

Still, growing its membership base is just one goal for Fabletics in 2026. The company is forging ahead on international expansion by working with partners who know local markets. For instance, it recently opened locations in Mexico, Dubai and Guatemala. Category expansion, like Fabletics recently did with men’s and scrubs, also remains a priority. When asked whether Fabletics could expand into kids’ clothes full-time, Bhatia did not rule that out. “We’ve had kids’ product here and there, but we’ll see if that grows,” she said.

Ultimately, Fabletics aims to double its revenue and quadruple its EBITDA by 2030. “We feel like we’re ahead of schedule on that plan,” Bhatia said. “Our product is better than it’s ever been before. … We feel really optimistic about what we’re doing, and hopefully, [we’re] just going to keep building on that momentum going into 2026.”

Jill Manoff contributed reporting.