• by Sarah Mahoney  @mahoney_sarah, June 9, 2015

In further evidence that Americans are loving a life lived in yoga pants, Lululemon Athletica posted stronger-than-expected sales and profits, making big gains online. And Fabletics, a lower-priced rival star-powered by actress Kate Hudson, is also on a roll, introducing a men’s line.

Lululemon says revenue for the first quarter of its fiscal year climbed 10% to $423.5 million, from $384.6 million in the same period a year ago. Comparable sales advanced 6%, and based on that strength, the Vancouver, B.C.-based company upped its sales forecast for the full year. Those gains were largely powered by direct-to-consumer sales, which soared 27% to $83.6 million, and now account for almost 20% of total sales. But sales in its physical stores actually fell 1%.

The results are good news for the company, still in comeback mode following the 2013 manufacturing-sparked PR crisis that had it selling too-sheer yoga pants and resulted, ultimately, in its founder stepping away from the company. And as the athleisure trend continues to gain steam, it finds itself competing in a crowded gym class, up against such brands as Fabletics, Sweaty Betty, Gap’s Athleta, and VF’s Lucy.

Some observers are holding off on saying all of Lululemon’s problems are behind it. Noting that its strength all came from online channels, Deutsche Bank’s David Weiner continues to rate the stock a hold. He also writes that the company's gross margin “fell short of both consensus and plan.”

Meanwhile, Fabletics is coming on strong. The company just announced the launch of FL2, a menswear line, with Kate Hudson’s brother Oliver (“Nashville”) Hudson as its spokesperson.

Like its women’s workout clothing, the idea is that men are also looking for clothes that are functional enough to exercise in, but stylish enough to wear the rest of the day.

“I need clothes that let me feel comfortable throughout the day, but also have a sense of style," he says in its announcement. "FL2 does just that—it takes me from school dropoff to my workout, to dinner with my family. I may stink, but damn, I look good."

All the items cost less than $100, and like its women’s clothing, FL2 is a “curated” shopping experience, with monthly personalized outfit recommendations. Shoppers can either opt for the monthly VIP membership and get 50% off, or check out as regular members.

Fabletics is also following in the footsteps of such trendy online retailers as Warby Parker, Bonobos, Birchbox and Blue Nile. Women’s Wear Daily reports that the company plans to open six physical stores this year.