Kate Hudson isn’t your typical tech executive, but she still dreams like one.
Kate Hudson wants to IPO
The actress-turned-commerce-exec thinks her company will go public.
The actress-turned-commerce-executive says she wants to see TechStyle Fashion Group, the umbrella company that owns her women’s athletic brand, Fabletics, go public sometime soon.
“What’s the goal?” Hudson repeated when Recode founder Kara Swisher asked her what the ultimate plan was. “The goal is to reach a certain IPO and then ...”
“To go bigger,” chimed in TechStyle CEO Adam Goldenberg. “We’re in the very early innings of building this company.”
That decision won’t be entirely up to Hudson or Goldenberg, who spoke onstage together Tuesday night at Recode’s Code Commerce event in San Francisco.
“I wish we still owned enough of the company that that was only our decision,” Goldenberg said. “One of the consequences that comes from [taking] $300 million is that we have investors that entrusted us ... so decisions of going public and on selling are not entirely our decisions.”
TechStyle Fashion Group, previously known as JustFab, has created a solid business. The company will do $650 million in sales this year, according to Goldenberg. $250 million or so of that comes from Hudson’s Fabletics brand, which makes much of its money from a $50-per-month membership fee.
That membership model has gotten the company into hot water in the past, though, as users have complained that they didn’t know what they were signing up for or that it’s too difficult to cancel a membership. Goldenberg says that’s not a fair characterization of his company, claiming that just half of one percent of their users have issues with the membership program.
“When you see negative press, it really does hurt,” Goldenberg said. “I think that’s on me as the CEO to actually tell our story and communicate what we’re really doing and why it’s so great.”
That’s what the roadshow is for.
This article originally appeared on Recode.net.
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