California Apparel News

Vernon, Calif.–based True Religion Apparel has partnered with UNIFA Premium to create True Religion Brand Jeans Germany, a joint venture that will assume control of the brand’s wholesale distribution in Germany, Austria, Switzerland, the Netherlands, Belgium and Luxembourg, effective Aug. 1.

True Religion Brand Jeans Germany will also be responsible for the operations of the True Religion store in Cologne, Germany.

The move is part of True Religion’s plans to expand its wholesale-distribution business in the affected countries and a precursor to a rollout of True Religion stores in the territory, said Jeff Lubell, True Religion’s chairman and chief executive, in a statement. “Presenting True Religion Brand Jeans in branded retail stores and premium wholesale customers’ stores follows our successful domestic strategy. UNIFA Premium brings demonstrated wholesale, retail and operations expertise. Reinhard Haase [UNIFA’s managing director] stands out to me as one of the best European merchants of the premium-denim category. We look forward to partnering with Reinhard and the UNIFA Premium wholesale, retail and operations team as they focus their efforts to expand the True Religion Brand,” Lubell said.

According to the release, UNIFA Premium has distributed True Religion in parts of Europe for six years and is the largest international distributor of True Religion Brand Jeans merchandise. “The joint venture’s business plan calls for expanding the brand’s presence with the opening of retail stores and shop-in-shops and increased wholesale-sales efforts, including new showrooms,” Haase said in a statement.

True Religion Apparel will own a controlling 60 percent interest in the joint venture, and UNIFA Premium will own a 40 percent interest. The joint venture’s financial results over the remainder of 2010 are not expected to affect True Religion Apparel’s 2010 net sales and earnings per share. The brand’s shares jumped more than 2 percent on the news to $25.33 per share.—Erin Barajas