Inside Fabletics’ plan to become a $1 billion brand in 2 years

This story was originally published on Modern Retail’s sibling publication Glossy.
In 2025, Fabletics is hitting the gas on growth including by venturing into new retail territory.
For the first time, the 12-year-old activewear brand will enter wholesale channels, including Nordstrom. Plus, it will newly expand to seven international markets, open at least 20 U.S. stores and build out the assortment of its Lifewear product category.
It’s all part of the growth strategy led by Ashley Kechter, who joined the company as global brand president in June 2023.
“I’m very confident we’ll hit $1 billion [in annual revenue] in the next two years, based on our growth rates and expanded international [business],” Kechter said on Sunday at NRF’s annual conference, Retail’s Big Show.
Kechter has a strong foundation to build upon. Fabletics is already inching toward $900 million in annual sales, plus it’s seeing double-digit comp growth in both its retail and e-commerce channels. In addition, it has high brand awareness and has already made moves to safeguard against potential China tariffs — a challenge many brands have only begun to contend with.
Entering the wholesale channel through some “major accounts” will be among the brand’s big moves, Kechter said. Those retailers will include Nordstrom, starting online within the next two months before entering stores; Von Maur in the Midwest; Hotworks fitness studios and smaller gyms. Internationally, they’ll include Germany’s high-end department store KaDeWe via shop-in-shops, Next in the U.K. and Zalando.
“Every single month from February forward, we’ll be launching a new account that we’re excited about,” Kechter said. “Our goal is to get our product in the hands of others who have never tried it — because once they try it, they will want to become a member.”
Fabletics started the year by kicking off plans for expansion to seven new countries. In April, it will expand to Mexico, where it will have standalone stores through shopping center operator Liverpool. Central America and the Middle East, including a store in Dubai Mall, will follow. Fabletics currently has international offices in Barcelona and London, but for the new markets, investing in feet on the ground won’t be necessary, Kechter said.
“We’re taking a more capital-light approach by working with highly skilled distribution partners,” she said. The company will be hands-on, however, when it comes to ensuring the local retail experiences befit the Fabletics brand. Training associates will be part of the process.
Fabletics currently has over 100 brand stores, and DTC retail is its fastest-growing channel. It is averaging 20 store openings annually, and same-store sales comps are up 20% year-over-year. For Fabletics, the role of stores is to bolster the company’s membership and DTC business, Kechter said. And an expedited rollout can be expected. “We could easily be at 250 stores,” she said.
Additional growth plans include product expansion in the Lifewear part of the business, including in tops where competitors offer a broader assortment.
To support Fabletics’ growth plan, Kechter has made three hires in the last 16 months: its head of international, Michael Roth; its head of wholesale, Thomas Fröhlke; and its CMO, Carly Gomez.
Fabletics launched in 2013 with a membership model, which has continued to be its biggest differentiator in the crowded activewear market. To build out its membership, which currently boasts 2.2 million members in the U.S., the brand has relied heavily on direct-response marketing and awareness via celebrities and UGC influencers.
As described by Kechter, Fabletics has a flexible membership model, allowing members to skip months and pick their own products, for example. By investing $59.95 per month, members gain access to a variety of perks, with the core of the program being a monthly “member credit” that can be redeemed for a product set worth at least $100.
Fabletics has also gone its own way by partnering with non-athletes to amplify the brand. They’ve included Khloé Kardashian, Demi Lovato and Kate Hudson. Many of its celebrity partners are shareholders in the company. The company has also leveraged paid media on Instagram to acquire customers.
“We pride ourselves on being a brand for the fans,” Kechter said. “[Our products] are high-performance, but they’re for everyone — not just the rockstar athlete.”
Fabletics has an “exceptionally diverse” customer base, she said, though its “sweet spot” age bracket for women customers is 18-35. In addition, it caters to many sizes, offering XXS-4X, and many areas of life. Its products have evolved beyond activewear to also include performance wear and “Lifewear,” the latter of which includes a pair of pants made to be worn from the golf course to the office.
Its male customers, meanwhile, are more often Gen Z. Fabletics launched its men’s category three years ago, and it already makes up 30% of the business. Kechter said she expects menswear to grow to 45% of the business, matching the split of the overall activewear market.
Not all Fabletics customers are members. Thirty percent buy products at their retail price, which, Kechter noted, is far more affordable than that of competitors. Fabletics’ leggings top out at $110, while Lululemon’s go up to $148. In total, Fabletics has a customer base of 3 million.
The company has recently employed several innovative tactics to drive sales on its e-commerce site. On product pages, videos of influencers wearing or reviewing the product have driven great engagement. On category pages, social-proof marketing, via tags like “Trending now” and “X number of units left,” has proven successful at clinching sales.
“We’re really leaning into FOMO messaging and additional affirmation [for the customer] that this is the right product,” Kechter said.
As for challenges in the year ahead, Kechter pointed to recent and pending macro-level changes. Fortunately, Fabletics has gotten in front of the potential China tariffs under the Trump administration: Over the last 12 months, it has “aggressively” migrated out of China, which has historically accounted for more than 50% of the brand’s production. This year, China will continue to drive 18% of the company’s production because its International partners can continue to source from the region.
Kechter also has her eye on TikTok’s fate, seeing as Fabletics does “a lot” of paid media and uses TikTok Shop, and its target customer uses the platform, she said. Finally, especially as Fabletics is an L.A. brand, Kechter and her team have been navigating how to best support fire victims via donations.