Adanola, a British activewear brand, has received a minority investment from PE firm STORY3, bringing its valuation to US$530 million as it increases its US expansion efforts.

The company, which reported US$112 million in global sales, has sold 1.5 million pairs of its US$65 leggings and is known for its pared-back product range and accessible pricing compared to competitors like Alo Yoga and Lululemon.

Adanola has expanded its offline presence through distribution in UK retailers Selfridges and Harrods, and is growing its US reach with retail collaborations with Equinox, Erewhon, and Forma Pilates.

The brand is also considering opening standalone stores in the US.

🔗 Source: Fitt Insider

🧠 Food for thought

1️⃣ Value-focused challengers are reshaping the activewear landscape

Adanola’s $530 million valuation despite selling $65 leggings reflects a broader market shift where affordable brands are outperforming premium incumbents.

Challenger brands in activewear have achieved 18% annual revenue growth compared to declining profitability at traditional market leaders1. This pattern extends beyond Adanola, with smaller direct-to-consumer brands like Alo Yoga seeing 91% traffic increases as they capture market share from established players2.

The US activewear market, projected to grow from $80.1 billion in 2018 to $94.1 billion by 2023, is increasingly driven by these nimble competitors who focus on specific consumer needs rather than broad market appeal2.

Adanola’s strategy of undercutting premium brands while maintaining quality mirrors successful challenger approaches across the industry. Where Lululemon positions itself as a luxury lifestyle brand, Adanola offers comparable functionality at accessible price points—selling 1.5 million pairs of leggings demonstrates strong consumer appetite for this value proposition.

This trend suggests traditional activewear hierarchies are breaking down as consumers prioritize practical value over brand prestige, creating opportunities for focused brands to achieve significant valuations through direct consumer engagement rather than premium positioning.