True Religion's Turnaround: A Denim Success Story
Tuesday, Jan 7, 2025 11:04 am ET
True Religion, the iconic denim brand, has seen its fair share of ups and downs since its acquisition by private equity firm TowerBrook Capital Partners in 2013. However, the brand has demonstrated remarkable resilience and adaptability, proving that it's not just a fashion trend but a timeless classic.

When TowerBrook acquired True Religion, the brand was already a well-established name in the fashion industry, known for its high-quality denim and distinctive horseshoe logo. However, the acquisition came at a time when the retail landscape was rapidly evolving, with e-commerce and athleisure gaining traction. Despite these challenges, True Religion has managed to maintain its relevance and appeal to consumers, particularly in the urban casual consumer segment.
One of the key strategies that True Religion has employed to adapt to the changing retail landscape is building long-standing relationships with influencers, particularly in the urban casual consumer segment. The brand has collaborated with various hip-hop artists, such as Chief Keef, Saweetie, and NLE Choppa, to create capsule collections and campaigns. These collaborations have helped True Religion tap into the cultural relevance of these artists and maintain its connection with the urban community.
Additionally, True Religion has expanded its global presence by entering the Chinese market. In 2023, the brand announced a partnership with Aurorae Group, becoming the exclusive distributor of True Religion in China. This move aims to open 65 independent stores and shop-in-shops by 2026, and a total of 108 stores by 2028. This expansion strategy allows True Religion to tap into the growing Chinese market and diversify its revenue streams.
Furthermore, True Religion has focused on slashing prices for its jeans to around $100, making them more affordable for a broader range of consumers. This pricing strategy, combined with the brand's cultural relevance and global expansion, has contributed to a 20% increase in sales to $280 million in 2022, with $80 million in earnings before interest, taxes, depreciation, and amortization.

In conclusion, True Religion's acquisition by TowerBrook Capital Partners has been a rollercoaster ride, with the brand facing significant challenges and setbacks. However, the brand has demonstrated remarkable adaptability and resilience, leveraging its connection with urban culture and hip-hop artists to strengthen its brand image and appeal to younger consumers. By expanding its global presence and focusing on affordability, True Religion has managed to maintain its relevance in the fashion industry and achieve sustainable growth. As the brand continues to evolve and adapt to the changing retail landscape, it remains a denim success story that is here to stay.