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RHAPSODY IN BLUE DENIM

The pricy True Religion jeans brand decides the time is right to open more stores

By Molly Knight

Status denim is a centerpiece in the wardrobe of even the most affluent consumer, so stylish people think nothing of plunking down the equivalent of a monthly car payment on that perfect pair of jeans. Trendy labels attract a range of shoppers, including celebrity-worshipping teens armed with mom and dad’s credit card, and hip suburban women looking to stay forever young.

Los Angeles-based True Religion is capitalizing on this appeal with some major expansion plans and a new licensing deal. Fashion designers Jeffrey and Kymberly Lubell, a husband and wife, launched True Religion in December 2002 with the flagship store in Manhattan Beach, Calif., a stone’s throw from the celebrities that would propel the chain into the spotlight. Today Jeffrey Lubell is chairman and CEO, and Kymberly Lubell is director and vice president of women’s design.

Despite strong sales, the company refrained from opening more units for nearly four years, preferring to offer its wares in exclusive department stores and high-end boutiques. In the U.S. True Religion apparel has been available at Fred Segal, Neiman Marcus, Nordstrom and Saks Fifth Avenue, among others. As the company’s reputation among that jet-setting clientele grew, so did its global presence. True Religion’s offerings have spread out to department stores in Britain, France, Hong Kong, Italy, Japan and Russia. U.K. shoppers find True Religion at Harrods and Harvey Nichols, while French patrons seek it out at Printemps and Galeries Lafayette.

After all that time selling mostly in other stores, True Religion took a step toward greater autonomy last November by opening its second boutique in Los Angeles, on the venerable North Robertson Boulevard. The next month, the company opened a store in New York City’s affluent SoHo district and followed that up in January with a fourth, 2,800-square-foot unit in Miami’s South Beach. True Religion also operates the Desert Hills Outlet, in Cabazon, Calif.

Now management says it plans to open nine more stores, all by the end of next year. “We’re still a relatively young company that really believed in starting small and establishing a successful business model,” said Emilio Fields, True Religion’s director of marketing and public relations. “The timing is right to expand right now, and we’re growing appropriate to what we feel will be successful.”

This spring will see the opening of a store in Chicago’s Lincoln Park neighborhood and a second in the Taubman Centers-owned Mall at Short Hills (N.J.), Fields says. After that, the company plans to open a unit at Houston Galleria, this summer, and at Lenox Square, Atlanta, in the fall, both of them Simon Property Group-owned centers. “Our stores range from about 1,000 square feet to the 2,800-square-foot store in Miami,” said Fields. “We will work with the size based on the location and what’s available to us. Regardless of the size, all of our stores have a nice boutique feel.”

Fields says True Religion plans to open stores in Marin County, Calif., and Las Vegas before the end of this year, but declined to disclose exactly where. By year-end 2008 the company plans to open in high-end shopping centers in Dallas; Oyster Bay, N.Y. ; and San Diego. With these, too, however, the company remains tight-lipped about precise locations. “We can’t share that information yet, because we’re a public company,” said Fields. “But I can say that for the most part, locations are chosen based on high traffic and strong co-tenants. Robertson was chosen in L.A. because of stores like Kitson and restaurants like the Ivy nearby. SoHo is an absolute shopping destination. The different shopping centers are being chosen because they’re all very strong and they attract the kind of customer we’re looking for.”

True Religion’s customers all have one thing in common: a large amount of disposable income. But beyond that, there is a lot of diversity among them. “Men, women, kids of all ages — our shopper is all over the place. For some people, True Religion is an ‘aspirational’ buy,” said Fields, referring to merchandise that many consumers want to buy but cannot comfortably afford, “for others, it just reflects their disposable income.”

Few casual-wear companies aspire to such an exclusive image. True Religion defines itself as a “design-based, premium global lifestyle brand” and focuses on the power of celebrity endorsement for that distinction. The press section of the company’s Web site contains US Weekly and People magazine photos of celebrities wearing its jeans, including David Beckham, Angelina Jolie and Madonna. “Stars love it,” said Dr. Robert Passikoff, president of Brand Keys, a New York City-based retail consulting firm. And with celebrities on board, Passikoff says, it’s easier to appeal to noncelebrities who want to imitate this stylishness. “Upscale people who see themselves as being extraordinarily stylish love True Religion,” said Passikoff. “Wearing this label across your behind says you’re hip and you’re with it. The brand resonates highly with this specific audience, and they’re in a category where they need to take advantage and expand now.”

Fields says the ornate designs that make up True Religion’s signature details differentiate the brand’s denim from competitors. He says some of the stitching patterns on pockets are currently being patented.

But the brand’s flair does not necessarily suit everyone who is in the market for a pricey pair of jeans, say some. “All their stuff is so over-the-top and flamboyant, outlandishly tight and flared,” said a Southern California retail employee who works in The Rail — a special section within Nordstrom that aims at hipster males between 18 and 30. “I’ve never just happened to sell a pair of True Religions to someone,” he said. “It’s always someone who comes into the store specifically looking for the brand. You wear it because you want to be recognized. You want a tiger on your backside with a sun setting in the background or a mythical creature plastered there. You want people to notice how expensive your jeans are.” And they are expensive. A pair of True Religions normally prices at between $280 and $350, with limited-edition designs often selling for more than that.

That may be one of the reasons the company signed a worldwide licensing deal with Pash Industries in November to produce and sell True Religion-branded clothing and leather outerwear. The new outerwear line of leathers, wools, cottons and knits was launched last month and is to start shipping to retailers in July. Insiders call this a major step toward broadening its audience.

The company currently has no plans to open branded boutiques outside the U.S., though Fields does not rule out international expansion. “All our manufacturing is done in California, so it would be pretty difficult right now to go too far.” But given the ease with which the company is stretching its stitch across the American landscape, and thanks to its truly religious clientele, True Religion could be weaving success overseas in no time.