Kate Hudson-Backed Apparel Brand Fabletics Taps Banks for IPO

Now that Kate Hudson and Gwyneth Paltrow have their own high-end fashion lines, more celebs are getting in on the action. Fabletics, the apparel brand designed by the supermodel and actress, is ready to go public, becoming the latest high-profile fashion label to bring in outside investors.

Kate Hudson’s new clothing line Fabletics is set to go public, and the model-turned-designer has tapped Goldman Sachs and Morgan Stanley to handle the deal. Fabletics is a women’s activewear line that features performance wear for yoga, fitness, running and other activities. The brand has raised $50 million and is expected to have revenue of $95 million for this year. The company was founded in 2014 by Kate Hudson and Fabletics’ CEO Kate Fagan.

Fabletics was founded in 2013 by Adam Goldenberg and Don Ressler, who have worked with Kate Hudson and often used her in their advertisements.

Photo:

Evan Agostini/Associated Press

Fabletics, the Kate Hudson-backed workout clothing brand, has approached banks to prepare for an IPO that will hopefully be valued at more than $5 billion, according to people familiar with the matter.

Fabletics, part of TechStyle Fashion Group, recently selected

Morgan Stanley,

MS -0.80%.

Goldman Sachs Group Inc,

Barclays

BCS 0.94%.

Plc. and Bank of America Corp. for the IPO and plan to raise about $500 million with the offering, they said.

Fabletics was founded in 2013

Adam Goldenberg

и

Don Ressler,

with Ms. Hudson has worked with them and used them frequently in her advertisements. It wants to fill the gap in the market between expensive brands like Lululemon and cheaper brands.

Participants pay a monthly fee that is used to purchase clothing, or they can skip a month. The company’s products include color-matched workout tops and bottoms, sports bras and other accessories. The brand also offers members access to a training app.

The IPO market is booming, and investors are especially open to consumer-focused companies, including startups developing medical wearables.

Figs Inc.

The company, which began trading in May, is valued at about $6 billion, and the stock remains above its IPO price even after plunging. The company Fancy oat milk

The Oatli Group

AB started with a valuation of about $10 billion. Although the company’s stock has fallen recently, it is still more than 15% above its IPO price. Chain of women’s clothing stores

Torrid Holdings Inc.

made its stock market debut earlier this month, and the company’s shares rose on the first day of trading. The share price remains above the IPO price.

Other consumer brands considering an IPO this year include fashion footwear maker Allbirds Inc. and eyewear maker Warby Parker Inc.

Celebrity-backed or celebrity-founded companies are also on the rise. In the run-up to the IPO, Oatly raised funds through a promotional campaign.

Blackstone Group Inc.

-starring Oprah Winfrey.

Honest Co.

a consumer products company co-founded by an actress.

Jessica Alba,

The company went public in the spring, but the stock has been struggling ever since. Honest Co.’s shares recently fell more than 10% from its IPO price. The Wall Street Journal reported Wednesday that over-the-counter drug company Genexa Inc. has received $60 million in funding from venture capitalists and celebrities, including Gwyneth Paltrow and Don Cheadle.

Email Kara Lombardo at cara.lombardo@wsj.com and Corrie Dribush at corrie.driebusch@wsj.com.

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Published in the print edition of 15. July 2021 under the title of clothing brand Fabletics is attracting banks to help it complete its IPO.

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