In 2013, visionaries Don Ressler and Adam Goldenberg, the masterminds behind TechStyle Fashion Group, envisioned a booming future for the athleisure market. They noticed a growing trend among Americans who favored versatile apparel that seamlessly transitioned from workouts to everyday wear. At the time, the landscape was dominated by a few brands that offered either exorbitant prices or uninspiring designs.

With this in mind, they set out to create a vibrant, stylish, and affordable activewear brand centered on a membership concept. To bring this idea to life, they needed the perfect collaborator. Enter actress Kate Hudson.

Hudson was renowned for her easygoing California vibe and passion for fitness, making her an ideal partner. Crucially, she brought genuine credibility to the brand, unlike typical celebrity endorsements. It was easy to picture Hudson sporting the clothing in her everyday activities. Thus, Fabletics was born, thanks to this dynamic partnership.

Over a decade later, the decision has proven to be exceptionally savvy.

Fabletics has evolved into a global powerhouse in the activewear industry, boasting over $1 billion in annual sales. The brand has established more than 120 retail outlets worldwide, with plans for further international expansion. Its initially contentious subscription model has turned into a key asset, driving consistent revenue through millions of loyal members.

Should the company decide to go public, Hudson might find herself in elite company, joining the exclusive ranks of celebrity billionaires.

Michael Buckner/Getty Images for Fabletics

The Celebrity Co-Founder Who Was Actually Involved

One of the reasons Fabletics succeeded where many celebrity brands fail is Hudson’s unusually hands-on role from the beginning.

She was not simply the face of the brand. She helped review budgets, weighed in on marketing strategy, participated in the design process, and closely monitored which products were selling. In the early years she reportedly reviewed sales numbers 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 leaned heavily into data. Its membership model allowed it to collect detailed information about customer preferences, helping the brand quickly adapt designs and inventory.

Of course, the road wasn’t entirely smooth. Early production problems forced the company to scrap an entire initial clothing run worth 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 Billion-Dollar Brand

In its early years, Fabletics grew at a remarkable pace.

By 2017, the company had reached roughly $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 proved to be a major growth engine. Stores helped recruit new members while also strengthening brand awareness.

Over the next several years, the company continued to expand its product lineup beyond women’s yoga apparel into menswear, lifestyle clothing, and specialty products such as medical scrubs. The men’s category has become one of the fastest-growing parts of the business.

In 2025, Fabletics crossed a major milestone: more than $1 billion in annual revenue.

Today, the brand operates more than 120 stores globally and continues opening new locations across the United States and international markets.

The Billionaire Question

Because Fabletics is privately held within TechStyle Fashion Group, its exact valuation is not publicly disclosed.

In July 2021, the company explored the possibility of an IPO. Two months earlier, the trendy milk company Oatly went public and fetched a $10 billion valuation. The year before its public offering, Oatly generted $420 million in revenue, double the year before that. Fabletics reportedly generated over $500 million in revenue in 2020. Using Oatly as one of several comparables, Fabletics indicated it hoped to go public in the $5 billion range.

As it turns out, the 2021-2023 IPO frenzy was a bit of a fluke. Oatly, and several other similar companies, have lost more than 90% of their market value since going public. Today, Oatly’s market cap is $322 million.

But let’s say Fabletics does go public in the near future. Hudson reportedly owns around a 20% stake in the company. If that ownership estimate is accurate, the value of her stake could vary widely depending on the company’s eventual valuation:

• $2 billion company value → $400 million stake
• $2.5 billion company value → $500 million stake
• $3 billion company value → $600 million stake
• $4 billion company value → $800 million stake
• $5 billion company value → $1 billion stake

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 not confirmed.

However, if the company eventually goes public at anything 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 Celebrity Entrepreneurs

If that happens, Hudson would join a growing list of celebrities who have built billion-dollar fortunes through consumer brands.

Rihanna reached billionaire status thanks to Fenty Beauty. Kim Kardashian built a massive fortune through Skims. Jessica Alba’s Honest Company also went public, though 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 footprint.

And unlike many celebrity founders, Hudson has remained deeply involved in shaping the company.

Whether or not the brand eventually goes public, one thing is clear: the actress who once seemed destined only for Hollywood romantic comedies has quietly built one of the most successful celebrity-backed apparel companies in the world.

If Fabletics continues its current trajectory, Kate Hudson may not just be a movie star.

She may soon be the next celebrity billionaire.