In 2013, entrepreneurs Don Ressler and Adam Goldenberg had an idea. The founders of TechStyle Fashion Group, the company behind subscription brands like JustFab and ShoeDazzle, believed the athleisure category was about to explode. Americans were increasingly adopting comfortable clothing that allowed them to transition from the gym to everyday life. But at the time, the market was dominated by a handful of brands that were either extremely expensive or uninspiring in design.
Their plan was to launch a stylish, colorful and reasonably priced sportswear brand based on a membership model. But they needed the right partner. The first person they thought of was actress Kate Hudson.
Hudson was already known for her laid-back California lifestyle and her love of fitness. More importantly, it brought authenticity. Unlike many celebrity endorsement deals, it was easy to imagine Hudson using the product in her daily life. So the trio came together to launch a new brand called “Fabletics.”
More than a decade later, that bet is starting to look extremely smart.
Today, Fabletics has become a global sportswear brand generating over $1 billion in annual revenue. The company operates more than 120 retail stores worldwide, with dozens more locations planned as it continues its international expansion. Its once-controversial subscription-based membership model has become one of the brand’s greatest strengths, with millions of members generating predictable recurring revenue.
And if the company ever goes public, Hudson could end up joining a very exclusive club: the ranks of billionaire celebrities.
Michael Buckner/Getty Images for Fabletics
The famous co-founder who was really involved
One of the reasons Fabletics succeeded where many celebrity brands fail is Hudson’s unusually hands-on role from the beginning.
She wasn’t simply the face of the brand. He helped review budgets, intervened in marketing strategy, participated in the design process, and closely monitored which products were sold. In the early years, he reportedly reviewed sales figures weekly to understand what customers were responding to.
Hudson also helped shape the tone of the brand. Fabletics positioned itself as inclusive and accessible, offering a wide range of sizes and pricing its products well below premium competitors like Lululemon, where leggings could easily cost close to $100.
The company also relied heavily on data. Its membership model allowed it to collect detailed information on customer preferences, which helped the brand quickly adapt designs and inventory.
Of course, the path was not entirely easy. Early production problems forced the company to scrap an entire initial production run of clothing valued at hundreds of thousands of dollars. The membership model also drew criticism when some customers complained about monthly charges if they forgot to skip a billing cycle.
But the brand quickly refined its messaging and operations. Once those early issues were resolved, growth accelerated rapidly.
From startup to multi-million dollar brand
In its early years, Fabletics grew at a remarkable rate.
In 2017, the company had reached approximately $250 million in annual sales and built a membership base of more than one million customers. The brand expanded into physical retail, a move that many digitally native brands struggle to execute successfully.
That decision turned out to be an important driver of growth. The stores helped recruit new members and at the same time strengthened brand awareness.
Over the next few years, the company continued to expand its product line beyond women’s yoga clothing into men’s clothing, lifestyle clothing, and specialty products such as medical gowns. The men’s category has become one of the fastest growing areas of the business.
In 2025, Fabletics passed a major milestone: more than billion dollars in annual revenue.
Today, the brand operates more than 120 stores worldwide and continues to open new locations in the United States and international markets.
The multi-million dollar question
Because Fabletics is a private company within the TechStyle Fashion Group, its exact valuation is not publicly disclosed.
In July 2021, the company explored the possibility of an IPO. Two months earlier, trendy dairy company Oatly went public and earned a valuation of $10 billion. The year before its public offering, Oatly generated $420 million in revenue, double the previous year. Fabletics reportedly generated more than $500 million in revenue in 2020. Using Oatly as one of several comparables, Fabletics indicated it expected to go public in the $5 billion range.
It turns out that the IPO frenzy of 2021-2023 was a fluke. Oatly and several other similar companies have lost more than 90% of their market value since going public. Today, Oatly’s market capitalization is $322 million.
But let’s say Fabletics goes public in the near future. Hudson reportedly owns about 20% of the company’s shares. If that ownership estimate is accurate, the value of your stake could vary widely depending on the company’s final valuation:
- Company value of 2 billion dollars → share of 400 million dollars
- Company value of $2.5 billion → share of $500 million
- Company value of 3 billion dollars → share of 600 million dollars
- Company value of 4 billion dollars → share of 800 million dollars
- Company value of 5 billion dollars → share of 1 billion dollars
At Celebrity Net Worth, we currently estimate Kate Hudson’s net worth at $500 million, largely because Fabletics remains a private company and its valuation is unconfirmed.
However, if the company eventually goes public at a valuation close to the rumored $5 billion valuation, Hudson’s stake alone could theoretically approach $1 billion.
(Photo by Gareth Cattermole/Getty Images)
A growing club of famous entrepreneurs
If that happens, Hudson would join a growing list of celebrities who have amassed multimillion-dollar fortunes through consumer brands.
Rihanna achieved billionaire status thanks to Fenty Beauty. Kim Kardashian built a huge fortune through Skims. Jessica Alba’s Honest Company also went public, although its stock struggled after its IPO.
Hudson’s path is somewhat different. Unlike many celebrity brands that rely primarily on licensing deals, Fabletics has built a large-scale retail operation with recurring membership revenue and a growing international presence.
And unlike many famous founders, Hudson has remained deeply involved in shaping the company.
Whether the brand eventually goes public or not, one thing is clear: the actress who once seemed destined only for Hollywood rom-coms has quietly built one of the most successful celebrity-endorsed clothing companies in the world.
If Fabletics continues its current trajectory, Kate Hudson may not just be a movie star.
You may soon become the next billionaire celebrity.