Last Updated on 05/16/2021 by GS Staff
Is Fabletics a Public Company?
No, Fabletics is not publicly traded. The company is owned by TechStyle Fashion Group, a private business. They own the brands JustFab, FabKids, Savage X Fenty, ShoeDazzle, and Fabletics. The company is a membership fashion retailer with a focus on acquiring VIP members who pay a monthly fee. Members receive perks such as discounts, free shipping when a spending threshold is achieved, and monthly member credits to redeem for merchandise. The subscription model is largely how Fabletics/TechStyle Fashion Group makes money. However, the company still capitalizes off of non-members through a retail model where purchases can be made without a membership and without the perks of the VIP membership (i.e. no discount).
Will Fabletics Ever Be Public?
Kate Hudson, a movie star and co-founder of Fabletics, stated in 2016 that she would like to see TechStyle Fashion Group be a public company. She told Recode that “The goal is to reach a certain IPO and then…”. It’s unclear what the “then” is but it is probably something like dominate the women’s activewear market and beyond. While Hudson would like to see the company public, investors in TechStyle Fashion Group are likely holding off until the timing is right to file an IPO.
As long as strong growth continues for the company, we suspect that Techstyle Fashion Group will be public during the foreseeable future. A Business Week article from December 2020 discusses the potential for an IPO in the next 12 months. Keep your eyes open for news on an IPO if you are a potential investor in a future public TechStyle Fashion Group.
Here are some of the top competitors of Fabletics. Since Fabletic/TechStyle Fashion Group is not public, you may wish to research the public companies listed below for potential investment purposes:
- Athleta – Athleta is a brand of The GAP (NYSE: GPS). The Gap acquired Athleta, a women’s sports and active apparel company, in 2009 for around $150 million. It is believed that The Gap may have beat out Lululemon in acquiring the company. In addition to Athleta, The Gap also owns several other brands including Banana Republic, Old Navy, The Gap, and others.
- Nike – The iconic shoe, equipment, and apparel company needs no introduction. It is the company behind the Jordan brand, Converse, Hurley, and Nike, of course. Nike’s apparel, such as its shorts and joggers, compete with Fabletics. Nike trades under the stock symbol NKE.
- Under Armour – Under Armour (NYSE: UA) recently put a focus on offering a more diverse selection of apparel and gear for women. According to Forbes, the company’s women’s activewear apparel increased 77% in the U.S. from January to May of 2020 compared to the prior year. This is quite impressive considering the impact of the pandemic on retailers. If you are interested in potentially investing in a company that makes women’s athletic apparel, keep an eye on Under Armour as it looks to gain ground on Nike and others.
- Adidas – Adidas is a German company that trades under the symbol ADDYY. In addition to Adidas, the company also owns Reebok. Both Reebok and Adidas manufacture a large assortment of shoes and clothing including hoodies, leggings, tops, tees, and pants.
- prAna – prAna is a brand of Columbia Sportswear (Nasdaq: COLM). The brand was launched in 1992. They specialize in producing high-quality clothing and accessories for men and women that are built to last. Clothing items include yoga, activewear, hiking, and more.
- Lululemon – Lululemon trades under the stock symbol LULU. They make popular athletic apparel for running, training, and yoga.
- Puma – Puma (PUMSY) sits only behind Nike and Adidas as the third-largest sportswear company in the world. You likely know the company best for its footwear and apparel.
Image Credit – Kat/flickr