Fabletics has recently retained banks to prepare for an initial public offering (IPO) with an aim at a valuation of more than $5 billion, sources told The Wall Street Journal*. The filing comes as the workout-apparel brand backed by actress Kate Hudson has ramped up store openings in 2021.

The company and owned by TechStyle Fashion Group recently selected Morgan Stanley, Goldman Sachs, Barclays and Bank of America as underwriters to raise about $500 million in the offering, according to the report.

Founded in 2013 by Adam Goldenberg, Don Ressler and Hudson, Fabletics operates on a membership model and e-commerce business approach. It has over 50 brick and mortar stores.

Fabletic’s membership program allows customers to become “VIP Members,” with access to discounts and perks. Personalized outfits are chosen for them based on their lifestyle and fashion preferences. The company claims to have over 2 million members. The retailer is also known for its focus on inclusivity, delivering weekly new collections in sizes XXS-4X for women and XS-XXL for men.

In March, Fabletics announced it would open 24 new store locations across the U.S. in 2021 as part of a ramped-up expansion strategy intended to grow its total brick and mortar presence in the U.S. to 74 locations by the end of 2021.

“We feel great about the return of retail,” said Goldenberg, CEO, Fabletics. “Our members have missed the in-store experience, and we’ve found they are eager to return. Personalized experiences that make in-store worth the visit are more important than ever, and that’s exactly what we’re bringing to new communities this year.”

TechStyle Fashion Group also owns four other direct-to-consumer brands: JustFab, FabKids, ShoeDazzle, and Savage X Fenty.

*The Wall Street Journal article noted that the IPO market has been on fire with healthcare apparel startup Figs Inc., oatmilk company Oatly Group AB and Torrid Holdings Inc., the plus-size apparel chain, all receiving positive receptions to IPOs. Allbirds and eyeglass retailer Warby Parker are two other consumer brands reportedly seeking IPOs in 2021.

Photo courtesy Fabletics