True Religion, the iconic denim brand known for its premium jeans, is reportedly exploring a sale. The company, since its inception in 2002 has managed to survive two bankruptcies, the most recent of which it emerged from in October 2020.
By 2021, True Religion had closed some stores but still achieved sales exceeding $235 million. This recovery trend continued into the following years, with the company reporting revenues of $467.3 million in 2022.
Despite these challenges, True Religion has maintained a robust presence in the market, with its CEO asserting that the business is as profitable as it was during its peak years as a publicly-traded entity. True Religion's strategy includes doubling its North American wholesale revenue over the next three years, signaling a strong focus on expanding its market presence.
The brand's financial health was further evidenced by its performance in 2023, where it garnered $260 million in sales. In 2023, the brand also introduced it's first plus-size styles available for sale on the company’s website.
Fast forward, True Religion has set ambitious targets, aiming to reach nearly $500 million in revenue by 2027. This goal is supported by plans for a 10% growth in the current year, indicating a trajectory towards a robust financial future.
Moreover, True Religion is adapting to contemporary trends by repositioning itself as a lifestyle brand, seeking to resonate with new consumer demographics, including Gen Z. The company's commitment to quality and authentic denim, as established by its founder Jeffrey Lubell in 2002, remains at the core of its business philosophy.
Interest in acquiring True Religion appears to be coming from a variety of suitors, including consumer-focused private equity firms and large, publicly traded apparel companies. This interest may be driven by the brand's strong identity and loyal customer base, which have been cultivated through innovative design techniques such as the distinctive five-needle thread at two-stitch-per-inch process, also known as the iconic Super T stitch.
Despite past financial hurdles, True Religion has emerged as a "very, very healthy business," according to company executives. With a clear vision for growth and a dedication to its foundational principles, True Religion appears poised to continue its upward trajectory in the competitive fashion industry.
