What's Happening?
Fabletics, a U.S.-based athleisure brand, is intensifying its focus on expanding its wholesale business in Europe. The company aims to increase its market presence through strategic partnerships with retailers and gym chains, such as Peek&Cloppenburg and Holmes Place. This move comes as part of Fabletics' broader strategy to stabilize and grow sales post-COVID-19. The brand has seen a significant increase in its wholesale business, which accounted for 1% of sales in 2024 and is expected to reach 8% this year. Fabletics plans to further increase this share to 12-13% next year. The company is also leveraging the influence of brand ambassador Khloé Kardashian to enhance visibility and attract wholesale partners.
Why It's Important?
The expansion of Fabletics' wholesale strategy in Europe is crucial for the brand's growth trajectory, especially as it seeks to stabilize sales after the pandemic. By partnering with established retailers and gym chains, Fabletics can reach new consumer segments and increase brand visibility beyond its direct-to-consumer model. This approach allows the company to tap into markets where it previously lacked presence, potentially increasing its customer base and sales. The involvement of high-profile figures like Khloé Kardashian further boosts the brand's appeal and market penetration, which is essential for competing in the crowded athleisure market.
What's Next?
Fabletics plans to open a new flagship store in Berlin by 2026 and is reviewing other potential store locations in Europe. The company is also set to expand its presence in Italy and Eastern Europe through distribution partners. Additionally, Fabletics will be present in 115 Peek & Cloppenburg stores across Germany, Austria, and Eastern Europe starting in the first quarter of 2026. These initiatives are part of Fabletics' strategy to establish 15-20 brand stores in Europe over the next two to three years, gradually building on this foundation to enhance its market presence.
Beyond the Headlines
Fabletics' expansion into the European market highlights the growing trend of U.S. brands seeking international growth opportunities. The company's focus on wholesale partnerships reflects a shift in strategy to adapt to varying consumer preferences across different regions. This move also underscores the importance of brand ambassadors in influencing market dynamics and consumer behavior. As Fabletics continues to expand, it may face challenges related to cultural differences in subscription models, particularly in markets like Germany, where consumers are traditionally cautious about such commitments.
