True Religion, the iconic denim brand known for its premium jeans, has been acquired by Acon Investments and SB360 Capital Partners. The acquisition marks a significant new chapter for the company, known for its signature stitching and logos, which was once a favorite among A-list celebrities like Jessica Simpson and Britney Spears.
Founded in 2002, True Religion quickly became synonymous with high-quality denim, often retailing for around $300 per pair. However, the company faced substantial challenges, filing for bankruptcy in 2017 and again in 2020. Despite these setbacks, True Religion has managed to stabilize its operations and adapt to a changing market.
Under the leadership of CEO Michael Buckley, who returned to the company in 2019, True Religion has shifted its strategy to better align with its target consumer base. The average income of True Religion's typical customer ranges from $60,000 to $65,000, and the brand has adjusted its price points accordingly. The average cost of their jeans has decreased to less than $100, aiming to attract a broader audience.
In recent years, True Religion has successfully revitalized its brand image. The company reported a notable 20% growth in sales, reaching $280 million in 2023. Additionally, it generated $80 million in EBITDA during the same period. This growth can be attributed to strategic marketing efforts and collaborations with contemporary influencers and artists.
The brand has notably partnered with hip-hop stars like Megan Thee Stallion and engaged with social media influencers such as Jayda Cheaves to reach a younger demographic. Buckley emphasized the importance of understanding the consumer landscape in his return to the brand.
"You have to know who your consumer is. The previous management, before I came back, was still trying to market to who they thought that customer was in 2010," – Michael Buckley.
This shift in focus has proved beneficial, as True Religion's marketing campaigns now resonate more effectively with today's consumers. The partnership with Acon Investments and SB360 Capital Partners is expected to further enhance this momentum.
In his remarks about the acquisition, Buckley stated, "Our partnership with ACON and SB360 represents an exciting new chapter for True Religion." With a combined $7.2 billion in assets under management, the new owners are well-positioned to invest in True Religion's growth and expansion strategy.
The collaboration with SB360, part of chairman Jay Schottenstein's network of companies, is also anticipated to provide additional resources and expertise that can help steer True Religion towards sustained success. As the denim market continues to evolve, True Religion aims to maintain its relevance through innovative designs and targeted marketing initiatives.
The denim industry has seen shifts in consumer preferences over recent years, with many brands struggling to maintain their foothold. However, True Religion's adaptive strategies suggest a promising road ahead. By understanding market dynamics and leveraging partnerships with influential figures, the company is poised for growth in an increasingly competitive landscape.
