True Religion’s Renaissance - A Lesson in Brand Strategy

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In a world where luxury often feels synonymous with exclusivity, True Religion is rewriting the narrative, beckoning a new era where fashion isn’t just for the elite—it’s for everyone.

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In 2002, True Religion broke onto the fashion scene in Manhattan Beach, California.

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Their jeans, retailing for $200 to $300, symbolized aspirational fashion for teenagers and young adults. Despite being more affordable than traditional designer labels, True Religion was associated with a sense of luxury and status.

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The magnetic pull of the brand increased as consumers rushed to emulate the style of Hollywood A-listers like Jessica Alba, Jessica Simpson, and Megan Fox, who regularly rocked True Religion jeans.

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However, by the early 2010s, True Religion had fallen out of favor. Denim was out, and athleisure was in.

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In 2017 and 2020, True Religion filed for bankruptcy.

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But now, with the help of Michael Buckley, the company’s former President who was appointed as CEO in 2019 following the bankruptcy proceedings, True Religion is experiencing a renaissance.

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True Religion is going after a new customer base. True Religion’s primary customer now makes between $60K and $65K annually, a far stretch from their typical customer in the past, who made closer to $200K.

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The strategy is working. In 2023, the company reported, per CNBC:

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• Sales increased 20% YoY to $280 million
• EBITDA closed at $80 million
• NPS was 10% higher than its competitor peer set, including brands like Nike and Ralph Lauren

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Their new playbook includes diversification, accessibility, and leveraging retail partnerships.

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True Religion failed to diversify when athleisure became a trend, but now they have active sets, including joggers, sweat shorts, and mesh.

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True Religion dropped its price point on denim jeans from $200+ in the early 2000s to $100 - $200 to make its apparel more accessible to its new target customer demographic, which makes substantially less money.

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True Religion is leveraging retail partnerships with brands like Urban Outfitters that share a similar customer demographic.

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With the new momentum, Farmstead Capital Management, True Religion’s majority shareholder, is exploring a private sale of the company. In Jan. 2024, they hired Baird to run a sale process with intentions of selling to a consumer-focused private equity firm or a large publicly traded apparel company.