Fabletics Expands into Denim Amid Slowing Athleisure Sales

Athletic apparel brand Fabletics has announced the launch of its first denim collection, set to debut online and in select stores on Thursday. This move comes as the athleisure market, once thriving, shows signs of slowing growth. The new collection will feature 11 styles and seven washes for both men and women, with prices ranging from $79.95 to $174.95, depending on whether customers are members of Fabletics' subscription program. Fabletics co-founder and CEO Adam Goldenberg stated that customer feedback indicated significant interest in denim, prompting the company's expansion into this category.

CNBC

The decision to enter the denim market reflects changing consumer preferences as the pandemic's influence wanes. The casual "soft" dressing trend, characterized by comfortable joggers and hoodies, is giving way to a renewed interest in denim as consumers return to more formal attire for work and social settings. Market intelligence from Euromonitor International indicates that while the sports apparel market is projected to grow by 2.3% in North America in 2026, this is a decrease from 3.1% growth between 2023 and 2024. In contrast, the denim market is expected to see a growth of 2.1% this year, a notable increase from 0.7% in the previous period.

CNBC

Globally, the athleisure market experienced a growth rate of 2% last year, while the denim market outpaced it with a growth rate of 4%. Goldenberg noted that even as consumers dress up more, they still prioritize comfort, which has been a key consideration in the development of Fabletics' denim line.

CNBC

The denim industry has a long history of fluctuating popularity, which has led major companies like Levi Strauss, American Eagle, and Gap to diversify their offerings by incorporating athleisure brands. This strategy helps mitigate the risks associated with changing fashion trends. In contrast, niche players such as Lululemon, which thrived during the pandemic, are now facing challenges as denim regains its status as a preferred casual staple.

CNBC

Adam Goldenberg emphasized the importance of comfort in the new denim collection, stating, "What we found coming out of the pandemic is like, comforts become king... we heard that very loudly from our customers when we were developing denim." This sentiment underscores Fabletics' strategy to align with evolving consumer desires.

CNBC

Despite the optimism surrounding Fabletics' new venture, some industry analysts express skepticism about the brand's ability to compete with established denim leaders. The challenges faced by niche brands like Lululemon highlight the difficulties in adapting to rapidly changing consumer preferences.

CNBC

As Fabletics launches its denim collection, the company will be closely monitoring consumer responses and market trends to determine the future direction of its product offerings in a competitive landscape.

CNBC