January 23, 2026
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Will Fabletics Be Able To Achieve Its Goal of Doubling Revenue By 2030?
In a comprehensive review of Fabletic’s current fortunes provided by Julia Waldow of Modern Retail, a case was made that the best was still to come for the activewear brand, despite being an established and maturing presence rather than a brash up-and-comer.
“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,” Waldow wrote, citing Fabletics president Meera Bhatia.
That loyalty play is arguably quite impressive: It’s not a free loyalty card being hawked by salespersons, but rather a pricey $69.95 monthly proposition that offers those who buy in a slew of rewards — from 20%-50% discounts on products to accumulated member credits which can be redeemed for merchandise valued up to $100. And according to Bhatia, approximately half of shoppers who pass through the doors are signing up.
“About half of our members tell us we’re their favorite brand. We have amazing brand loyalty,” Bhatia said, as the company further indicated that a whopping 95% of its revenue is derived from member spend.
Fabletics Retail Stores Driving Double-Digit Sales Comps
Despite its e-comm operations driving the bulk of its overall sales bottom line, Fabletics isn’t resting on its laurels when it comes to physical stores, either — with these seeing double-digit comparable sales increases. The retailer currently operates stores in 36 states across the U.S., with stores themselves acting as discovery touchpoints for new customers unfamiliar with the brand’s inventory.
“The store is exposing our brand to people who haven’t touched or seen [the merchandise] before,” Bhatia said.
Other info points pulled from the coverage concerning Fabletics:
- Omnichannel matters: With dedicated online shoppers also dipping in-store to experiment and test products in person, the omnichannel approach is foundational for Fabletics. “We see four times in value from an omnichannel shopper, versus a regular one-channel shopper. We have a bit more discovery happening [in stores],” Bhatia said.
- AI is giving the assist in selling VIP memberships: Artificial intelligence tools are offering feedback on sales scripts in real time, training associates on new products and how best to pitch the VIP plan to prospective members. Further, a proprietary tech stack integration allows Fabletics to identify shoppers when they walk through the doors. “We know what they loved online, and our store associates can make recommendations to them,” Bhatia added.
- Discounts, and customer data, tied to VIP membership: While sweetening the deal by offering steep discounts to VIP members alone, rather than broadly on the front-facing shelf tag, the activewear retailer also gains a valuable byproduct in the form of customer data acquisition — what Bhatia termed a “treasure trove of customer data.” With the brand’s quickly expanding physical footprint, this gathering of data will likely only grow.
Fabletics doesn’t appear satisfied to rest easy on the success is has thus far crafted, either. The retailer has a lofty goal: It wants to double revenue and quadruple its EBITDA by 2030.
“We feel like we’re ahead of schedule on that plan. 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,” Bhatia concluded.
BrainTrust
Neil Saunders
Managing Director, GlobalData
Scott Benedict
Founder & CEO, Benedict Enterprises LLC
Allison McCabe
Director Retail Technology, enVista
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Discussion Questions
Is it likely that Fabletics will be able to reach its goal of doubling revenue by 2030, in your opinion? Why or why not? What headwinds are most obvious?
What do you think about store staff teaming up with AI to come up with a personalized sales pitch to shoppers? Will this become commonplace across physical retail?
What differentiators allow Fabletics to successfully sell a pricey monthly VIP membership to so many customers?
Poll
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As the organic growth rate of athleisure in the US is very shallow, Fabletics will need to steal share from other players to reach its goal. This is possible, as Fabletics has a strong position and has been winning customers over, especially where it has opened stores. The membership program is another vehicle for growth and is a differentiator. That said, there are a heck of a lot of complaints about people being unknowingly subscribed to the membership program and finding it hard to cancel. Indeed, when I was in the UK over the holidays, there was a whole piece on BBC Radio 4 about it!
No, they’ll miss by 3%…TBH this goal sounds rather arbitrary, and one wonders how important it is: what if it’s one-and-half? what if they’re “only” really profitable?
It’s possible that Fabletics will reach its goal of doubling revenue by 2030, but it isn’t a slam-dunk outcome — and there are obvious headwinds to contend with. The brand just topped $1 billion in revenue in 2025 and is growing roughly in line with its strategic plan, buoyed by double-digit comps in stores, a strong omnichannel playbook, and profitable expansion into wholesale and international markets. About 90% of its active customers are paid VIP members, and the company sees store traffic as a powerful acquisition channel that introduces new shoppers to the brand and its membership model. These are solid foundations for scale.
Still, there are headwinds worth watching. The activewear space is crowded and competitive — from legacy incumbents like Lululemon to digitally native challengers — and will continue to grow at scale, requiring not just more customers but higher lifetime value and repeat business. Macro pressures on discretionary spending may also temper growth, especially if consumers tighten their belts or shift priorities. So while the strategy is directionally strong, hitting a precise doubling target in a category with relatively shallow organic growth will likely depend as much on stealing share and maintaining engagement as it does on market expansion.
The notion of store staff teaming up with AI to tailor personalized sales pitches — as Fabletics is already doing — feels like a foreshadowing of what broader physical retail could look like. Using AI to coach associates in real time, recommend products based on known online preferences, and explain the value of VIP plans creates a more informed, relevant conversation with the shopper. That level of augmentation — where store teams are empowered by customer data and intelligent prompts — could indeed become commonplace as retailers seek to blend the best of digital insight with physical presence.
Finally, the differentiators behind Fabletics’ relatively high paid VIP membership come down to perceived value and behavioral economics: meaningful discounts (20–50% off for members and sizable merchandise credits), a sense of belonging, and omnichannel convenience that rewards regular engagement. In a model where 95 % of revenue comes from member spend, the membership isn’t just a pricing tactic — it’s the engine that fuels loyalty, data collection, and recurring revenue. When members feel like insiders, get differentiated pricing, and are continually engaged, they’re far likelier to stay active — even at a price point that would flummox other retail categories.
Can they keep people paying? With so many subscription services fighting for our money, will people really keep paying a $70 monthly fee for workout clothes until 2030, or will “subscription fatigue” eventually kick in? will the specific American “VIP” membership model translate well to other cultures, or will they have to change their entire strategy to grow?
$840 a year to get discounts?? The math for most consumers simply doesn’t work. Fabletics must be very dependent on that membership program for revenue and that won’t last.
Either a portion of the most loyal customers all of a sudden want 3x-5x more athletic wear than they’ve had before, or a marketshare shift must happen with more casual clothing shoppers wanting athletic wear. Not sure how this math works.
An annual Costco membership at $65/$130 is proven for shoppers because they enjoy low prices with high quality/value across food and hard good products. An Erewhon membership at the upscale specialty grocer for $20/month gives free drinks, discounts on food, and free delivery. Fabletics loyalty at $69.95/month to receive discounts to buy even more activewear? If this is to work, a significant amount of marketshare must come out of some other activewear retailer. And consumers will need a hungry appetite for more activewear.
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As the organic growth rate of athleisure in the US is very shallow, Fabletics will need to steal share from other players to reach its goal. This is possible, as Fabletics has a strong position and has been winning customers over, especially where it has opened stores. The membership program is another vehicle for growth and is a differentiator. That said, there are a heck of a lot of complaints about people being unknowingly subscribed to the membership program and finding it hard to cancel. Indeed, when I was in the UK over the holidays, there was a whole piece on BBC Radio 4 about it!
No, they’ll miss by 3%…TBH this goal sounds rather arbitrary, and one wonders how important it is: what if it’s one-and-half? what if they’re “only” really profitable?
It’s possible that Fabletics will reach its goal of doubling revenue by 2030, but it isn’t a slam-dunk outcome — and there are obvious headwinds to contend with. The brand just topped $1 billion in revenue in 2025 and is growing roughly in line with its strategic plan, buoyed by double-digit comps in stores, a strong omnichannel playbook, and profitable expansion into wholesale and international markets. About 90% of its active customers are paid VIP members, and the company sees store traffic as a powerful acquisition channel that introduces new shoppers to the brand and its membership model. These are solid foundations for scale.
Still, there are headwinds worth watching. The activewear space is crowded and competitive — from legacy incumbents like Lululemon to digitally native challengers — and will continue to grow at scale, requiring not just more customers but higher lifetime value and repeat business. Macro pressures on discretionary spending may also temper growth, especially if consumers tighten their belts or shift priorities. So while the strategy is directionally strong, hitting a precise doubling target in a category with relatively shallow organic growth will likely depend as much on stealing share and maintaining engagement as it does on market expansion.
The notion of store staff teaming up with AI to tailor personalized sales pitches — as Fabletics is already doing — feels like a foreshadowing of what broader physical retail could look like. Using AI to coach associates in real time, recommend products based on known online preferences, and explain the value of VIP plans creates a more informed, relevant conversation with the shopper. That level of augmentation — where store teams are empowered by customer data and intelligent prompts — could indeed become commonplace as retailers seek to blend the best of digital insight with physical presence.
Finally, the differentiators behind Fabletics’ relatively high paid VIP membership come down to perceived value and behavioral economics: meaningful discounts (20–50% off for members and sizable merchandise credits), a sense of belonging, and omnichannel convenience that rewards regular engagement. In a model where 95 % of revenue comes from member spend, the membership isn’t just a pricing tactic — it’s the engine that fuels loyalty, data collection, and recurring revenue. When members feel like insiders, get differentiated pricing, and are continually engaged, they’re far likelier to stay active — even at a price point that would flummox other retail categories.
Can they keep people paying? With so many subscription services fighting for our money, will people really keep paying a $70 monthly fee for workout clothes until 2030, or will “subscription fatigue” eventually kick in? will the specific American “VIP” membership model translate well to other cultures, or will they have to change their entire strategy to grow?
$840 a year to get discounts?? The math for most consumers simply doesn’t work. Fabletics must be very dependent on that membership program for revenue and that won’t last.
Either a portion of the most loyal customers all of a sudden want 3x-5x more athletic wear than they’ve had before, or a marketshare shift must happen with more casual clothing shoppers wanting athletic wear. Not sure how this math works.
An annual Costco membership at $65/$130 is proven for shoppers because they enjoy low prices with high quality/value across food and hard good products. An Erewhon membership at the upscale specialty grocer for $20/month gives free drinks, discounts on food, and free delivery. Fabletics loyalty at $69.95/month to receive discounts to buy even more activewear? If this is to work, a significant amount of marketshare must come out of some other activewear retailer. And consumers will need a hungry appetite for more activewear.