True Faith Model Denims retailer entrance: The corporate sells what they name “premium denim” that’s handcrafted in America.
Roberto Machado Noah | Lightrocket | Getty Photos
Denim model True Faith has been acquired by non-public fairness agency Acon Investments and American Eagle affiliate SB360 Capital Companions, a retail funding fund chaired by the retailer’s CEO Jay Schottenstein, CNBC has realized.
The Y2K-era jean model is making a comeback beneath veteran firm CEO Michael Buckley and was put up for sale last year after rising from its second chapter in 2020.
Phrases of the deal weren’t disclosed. Final yr, the corporate was anticipated to promote at a mid-single-digit a number of of earnings earlier than curiosity, taxes, depreciation and amortization. In 2023 True Faith’s gross sales rose 20% to $280 million and generated $80 million in EBITDA, CNBC beforehand reported.
“Our partnership with ACON and SB360 represents an thrilling new chapter for True Faith,” Buckley stated in an announcement. “With their experience and sources, we’re poised to boost our digital and retail capabilities, speed up our worldwide progress and proceed to innovate our attire providing.”
Washington-based Acon manages $7.2 billion in belongings and has beforehand invested in different common shopper manufacturers, together with Applebee’s, Igloo, Spirit Halloween and Borden Dairy, based on its web site. SB360 is a strategic companion of Acon and is a part of Chairman Schottenstein’s community of firms, which incorporates American Eagle and DSW. The corporate is a retail funding agency that invests fairness capital to help progress alternatives.
Grammy-winning recording artist Megan Thee Stallion stars in True Faith’s 2024 vacation marketing campaign.
The true faith
True Faith is getting a brand new dwelling because the retailer transforms from a scrappy model clinging to its luxurious roots to an city staple that collaborates with hip-hop stars like Megan Thee Stallion, who was the face of the retailer’s vacation marketing campaign for 2024
The comeback is rooted in a advertising technique led by Chief Advertising Officer Kristen D’Arcy that focuses on partnering with strategic influencers like Jada Cheeves, a content material creator with practically 9 million Instagram followers. True faith has additionally benefited from a bit of a good timewhich will be important to the success of a trend model. Denims have not too long ago change into one of many the hottest segments in the apparel sector and Y2K trend has returned in model amongst youthful customers, making manufacturers like Ed Hardy and Von Dutch common once more.
True Faith was based in 2002. and hers $300 denims identified for his or her signature stitching and smiling Buddha and horseshoe logos, were beloved amongst A-listers like Jessica Simpson and Britney Spears. Nevertheless, in 2010 the corporate’s momentum misplaced steam and it fell out of favor with customers, leaving it bankrupt by 2017.
The true faith eventually appeared from that chapter and did so once more in 2020 after submitting for a second time in the midst of the Covid pandemic.
Buckley, who led the corporate within the 2000s, returned in 2019. and is working to decrease prices and appeal to a brand new shopper, which is often extra numerous with a mean revenue of about $60,000 to $65,000. On the identical time, its typical worth for denims has dropped to lower than $100 a pair, which is extra reasonably priced for its goal buyer base and consistent with rivals corresponding to Levi Strauss.
“It’s important to know who your shopper is. The earlier administration, earlier than I got here again, was nonetheless attempting to market who they thought the shopper was in 2010,” Buckley advised CNBC in an interview final yr. “They left the model. There are lots of extra followers [today] than there are, , name it the early adopters who wished that model again then.”
On the time, Buckley stated True Faith had the potential to be a billion-dollar model. To get there, the corporate is working to increase its assortment, drive direct gross sales on-line moderately than by means of wholesalers, and attain extra ladies.
