×
271
Fashion Jobs
H&M
Visual Merchandising Manager - Sylvia Park
Permanent · AUCKLAND
LOVISA
Regional Manager
Permanent ·
ESTEE LAUDER
bb/cl/el/jm/lm/Mac/tf - Freelance Consultant - Auckland - on-Call/Freelance
Permanent · Auckland
UNDER ARMOUR
Store Manager - Amazon Surf Skate Takapuna
Permanent · AUCKLAND
ADIDAS
Store Manager, Adidas Westgate Factory Outlet
Permanent · AUCKLAND
PUMA
Holiday Casual Sales Associates - te Rapa
Permanent · HAMILTON
UNDER ARMOUR
Store Manager - Amazon - Glenfield
Permanent · AUCKLAND
H&M
Department Manager - Sylvia Park
Permanent · AUCKLAND
H&M
Department Manager - Wellington
Permanent · LOWER HUTT
H&M
28hr pt Sales Advisor - Flagship Store Commercial Bay
Permanent · AUCKLAND
H&M
Department Manager - Riccarton
Permanent · CHRISTCHURCH
PUMA
Retail Supervisor - Onehunga
Permanent · AUCKLAND
PUMA
Sales Associate - Onehunga
Permanent · AUCKLAND
PUMA
Holiday Casual Sales Associates - Onehunga
Permanent · AUCKLAND
ADIDAS
Retail Professional (Part Time) - Adidas Newmarket Bcs
Permanent · AUCKLAND
ADIDAS
Expressions of Interest (Retail Professionals) - Adidas Auckland Airport re-Opening
Permanent · AUCKLAND
ADIDAS
Retail Professional (Part Time) - Adidas Hornby
Permanent · CHRISTCHURCH
ADIDAS
3ic - Adidas Hornby FO
Permanent · CHRISTCHURCH
ADIDAS
Retail Professional (Part Time) - Adidas Britomart Ocs
Permanent · AUCKLAND
ADIDAS
Assistant Store Manager - Adidas Newmarket Bcs
Permanent · AUCKLAND
ADIDAS
Casual Retail Professional - Adidas Onehunga FO (Christmas)
Permanent · AUCKLAND
ADIDAS
Casual Retail Professional - Adidas Westgate FO (Christmas)
Permanent · AUCKLAND
By
Reuters
Published
Aug 27, 2008
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

True Religion growing existing wholesale business

By
Reuters
Published
Aug 27, 2008


True Religion 2008

By Alexandria Sage

LAS VEGAS, Aug 26 (Reuters) - Premium jeans brand True Religion Apparel Inc is focused on increasing its penetration into existing retail accounts, given recent record-breaking sales trends, the company's chief financial officer said on Tuesday.

The company, whose jeans can retail for as high as $300 in specialty boutiques and major department stores such as Saks Inc and Nordstrom , is not actively seeking new wholesale accounts, given the possibility of brand dilution, said Pete Collins, chief financial officer of the Los Angeles-based brand.

"It's not new accounts, it's penetrating what you've got," Collins told Reuters, speaking at the Project apparel trade show in Las Vegas, where the company has a booth where buyers peruse new styles and place orders.

"Once you start doing that (expanding too broadly) you lose the cachet of the accounts you've got. We're committed to staying at that (high) tier," Collins said.

The young brand that began making jeans with a horseshoe on its back pocket in 2003 posted sales growth of 79 percent in its most recent quarter.

Some 45 accounts make up the bulk of its U.S. wholesale business, which now represents some 60 percent of True Religion's total sales.

The company expects that percentage will decline to 45 percent of total sales beginning in 2011, when it will have approximately 80 of its own stores.

Brean Murray Carret analyst Eric Beder, who has a "Buy" rating on the company, said the strategy of focusing on existing wholesale accounts makes sense.

"They want to be an exclusive brand," he said. "To be an exclusive brand, you have to be exclusive."

As True Religion grows its U.S. store base -- there are now some 34 stores open, with a target of 39 by year's end -- it can show its large wholesale accounts what is selling well in its own stores and convince them to carry those items, Collins said.

"It's an easier sell," he said.

In the meantime, the company is focused on getting more jeans into its existing department store accounts. On average, those retailers carry some ten styles of men's or women's jeans, although the company makes many more.

Growth in sportswear has been a priority for the company -- the category makes up about 27 percent of sales at its own stores, but represents only about 10 to 15 percent at wholesale -- but the company has pulled back on its prior focus of getting its wholesale accounts to carry more sportswear items along with jeans.

"We'd rather see them buy more of the jeans," Collins said, adding that the company had decided not to "get ourselves worked up about it having to come from sportswear."

Sportswear, whether hoodies, T-shirts or other trendy items, carries lower retail prices than jeans, but the same profit margins, Collins said.

There is more than enough room to grow True Religion's wholesale business at existing accounts, said Beder.

"I think they are underpenetrated in denim. There is an opportunity there," he said.

Denim on offer at the trade show included jeans with studs and leather patches on back pockets, jeans with multicolored stitching, and the "Gold Disco" available next year, a jean embellished with gold-colored crystals.

True Religion is also incorporating more stretch denim into its women's jeans line.

"On the women's side, it will be a significant part of our business," Collins said. (Editing by Gary Hill)

© Thomson Reuters 2022 All rights reserved.