Needham & Company recently released a research note covering the privately held companies that presented at the ICR Investor Conference in Orlando, FL, last week. The investment banking and asset management firm summarized a number of companies in the active lifestyle industry, including Fabletics, the athleisure apparel line co-founded by entrepreneurs Adam Goldenberg, Don Ressler, and Ginger Ressler, with actress Kate Hudson joining as a co-founder in 2015.
Fabletics is currently owned by TechStyle Fashion Group, formerly JustFab, Inc., which serves as the parent of the Savage X Fenty, JustFab, ShoeDazzle, and FabKids brands. The company functions as a fashion incubator, using technology and its membership platform to “launch and grow distinct, popular brands that offer style and value directly to consumers,” according to AI-generated information.
Fabletics CEO Adam Goldenberg announced at ICR on January 13 that the company surpassed $1 billion in annual sales, achieved 18 percent growth in 2025, and recorded over 25 percent growth in the fourth quarter.
The brand reportedly positions itself in the “white space” between higher-end brands and mass brands. He said the brand is priced ~15 percent below Lululemon.
Retail stores, representing 23 percent of company revenue, were said to be performing very well, according to the Needham note, comping up 15 percent in 2025 on top of 19 percent and 11 percent comps in the prior two years. E-commerce, which accounted for 71 percent of revenue, also reportedly remains strong.
Needham said the company’s focus is continuing to expand its VIP membership program, which offers deep product discounts. The program reportedly generates a “significant amount” of recurring revenue (~$550 million in 2025). Roughly 80 percent of customers are VIP members, who account for 95 percent of revenue. VIP membership grew to 2.7 million, up from 2.4 million the year before.
The company reportedly introduced a five-year plan last year to double revenue and quadruple EBITDA and is “ahead of schedule at this point and on pace to achieve its five-year plan goals in four years.”
The growth strategy centers on five key pillars:
- Innovation
- Customer acquisition (current brand awareness is only 42 percent).
- Increasing wallet share (30 percent in 2025 vs 23 percent in 2023).
- Scaling to 225 to 250 U.S. stores from its current 114 doors.
- Accelerating international expansion.
Needham said its CEO identified category expansion as another priority. Menswear reportedly now accounts for more than 30 percent of the business, driven by new products such as the “Don” franchise. The Scrubs range has become a $75 million line.
Image courtesy Fabletics
