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Kate Hudson explains why her athleisure company now offers XXS and 3X sizes

Nicole Sinclair
Markets Correspondent

Actress-turned-entrepreneur Kate Hudson said her main priority for her athleisure company Fabletics is inclusivity and community.

“What’s been great about this time … is that women are starting to recognize the real importance of supporting each other, because we still have a long way to go,” Hudson said.

To build on its mission of inclusivity, Fabletics is now rolling out extended sizing that ranges from XXS to 3X.

“When I started Fabletics, my goal was (and still is) to empower women and design with every woman in mind, because everyone—regardless of size, shape, age or ability—deserves to look incredible, be inspired and feel their absolute best,” Hudson said. “We don’t see this as the introduction of a separate line but an extension of our brand that now allows us to embrace all the amazing women who are, or want to become, part of our community. Our mission is to support all women on their journey to live a healthy, active lifestyle.”

As clothing retailers struggle to grow sales—particularly department stores like Macy’s (M) that have suffered from the decline in mall traffic—the plus size opportunity is significant.

The average female customer today is a size 14, up from a size 12 ten years ago. Annual U.S. sales of women’s plus-size apparel (size 14 and higher) rose by 17% to $20 billion in 2016, according to NPD Group, compared to just 7% growth for overall apparel sales. With one-third of Americans obese, according to the Centers for Disease Control and Prevention (CDC), there is more of a need for a broader range of sizes.

Fabletics saw 46% global growth in 2016 and is now operating at a $250 million run rate, a pace that has been “fast and furious,” according to Hudson.

Hudson said, for her, the success comes from continual engagement and connection among members who sign up for loyalty benefits. That community—along with affordability—is what sets her company apart from other names in the space, like Lululemon (LULU), she explained. Now women of all sizes can be a part of that community.

Kate Hudson talks to Yahoo Finance’s Nicole Sinclair about Fabletics (Yahoo Finance)

Brand president and general manager Gregg Throgmartin added that the extended sizing is an important focus for the brand currently and that the company will be thoughtfully rolling out updates to their brand and model over time.

Nicole Sinclair is markets correspondent at Yahoo Finance.

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