The news: Activewear brand Fabletics is relying on store openings in the US and abroad to double annual revenues to $2 billion and quadruple EBITDA over the next five years, per a press release.

• The company plans to open 25 stores in the US over the next year, in addition to the 12 opened during the first half of 2026.
• Fabletics will triple its international footprint in the next 12 months, with 20 stores and several new markets—including India, the United Arab Emirates (UAE), and Colombia—in the pipeline.

Zoom out: Fabletics isn’t the only company to see greener pastures overseas—companies ranging from Colgate-Palmolive to Chipotle are relying on international expansion to grow sales as conditions in the US remain challenging. Fellow athleisure brands Alo Yoga and Vuori are also looking abroad, with Alo Yoga recently making its China debut via a Tmall storefront and Vuori in the process of doubling its store footprint outside the US.

At the same time, Fabletic’s aggressive US expansion shows that it still sees pockets of opportunity despite the saturated athleisure market. That could reflect optimism tied to the launch of its denim collection, which enabled the company to establish a toehold in a faster-growing category. While North America sports apparel sales growth will slow to 2.3% this year, down from 3.1% in 2025, per Euromonitor, denim sales are expected to accelerate, reflecting a shift to more structured, less casual apparel.

Implications for retail: Fabletics’ reliance on stores to drive growth speaks to the continued importance of physical retail, especially in new markets. Retailers should view stores not just as sales channels, but as vehicles for building brand awareness and strengthening ties with local communities.

While international expansion could offer a hedge to potential US weakness, brands should tread carefully. Each market has its own idiosyncrasies and preferences that require local expertise to tease out—which could favor companies that take the time to learn about their customers before setting up shop.

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