True Religion is targeting $1 billion in annual sales within five years after joining forces with Baby Phat for a nostalgia-driven collaboration. This partnership is designed to bring early-2000s streetwear back to a new generation. The collab was unveiled at a Los Angeles runway event on 27 October. It combines low-rise denim, crystal embellishments, faux fur and cropped tops, reviving the conspicuous glamour that once made both labels staples of celebrity and hip-hop fashion.
The launch marks a new chapter for True Religion, which filed for bankruptcy protection twice, in 2017 and 2020. The denim brand now expects sales to reach $550 million in 2026, according to chief executive Michael Buckley, as it uses collaborations, celebrity visibility and renewed interest in Y2K fashion to expand its customer base. The $1 billion figure is a five-year sales target, rather than a confirmed valuation or an amount already earned.
The collaboration brings together two brands with deep connections to early-2000s popular culture. True Religion became known for its distinctive horseshoe pocket stitching and heavily constructed denim, while Baby Phat built its identity around fitted silhouettes, rhinestone embellishments and glamorous streetwear under founder Kimora Lee.
The limited-edition collection became available on 27 October through the brands' online shops. Its release follows a period in which low-rise jeans, baby tees and embellished sportswear have regained visibility, attracting younger shoppers who did not necessarily experience the original Y2K fashion era firsthand.
True Religion's Comeback
Founded in 2002, True Religion grew into a prominent denim label during the 2000s, becoming recognisable for its thick stitching, fitted jeans and conspicuous back-pocket designs. Its popularity extended into hip-hop culture, where musicians wore the label and referenced it in their work.
The company's financial difficulties became increasingly visible in the following decade. True Religion first filed for Chapter 11 bankruptcy protection in July 2017, seeking to reorganise its finances and reduce debt. It filed again on 13 April 2020, less than three years later, citing liquidity constraints that were worsened by the COVID-19 pandemic and the disruption to retail.
Chapter 11 allows eligible businesses to reorganise their finances under court supervision. A bankruptcy filing does not necessarily mean that a brand permanently closes, and True Religion continued operating after both proceedings.
The company has since rebuilt its business, with executives now describing its current performance as stronger than during its earlier peak. Chief marketing officer Kristen D'Arcy told Vogue that the brand is recording its highest sales and profitability to date. Those figures are company-reported assessments, while the $550 million sales figure for 2026 is a projection rather than a final audited result.
True Religion's owners are also reportedly exploring a sale or minority investment that could value the company at close to $1 billion. That potential transaction is separate from management's goal of reaching $1 billion in annual sales within five years.
Why Baby Phat is a strategic partner
Baby Phat adds more than a recognisable name to the collaboration. Kimora Lee launched the label in 1999 as an offshoot of Phat Farm, bringing together fitted streetwear, luxury-inspired details and the glamour associated with hip-hop fashion. The brand became associated with artists including Aaliyah, Lil' Kim, Missy Elliott and Alicia Keys.
Lee helped shape Baby Phat's distinctive look through rhinestone-covered clothing, figure-hugging denim, cropped tops and fur-trimmed outerwear. Its fashion shows attracted celebrity attention, while the cat logo became a familiar symbol of early-2000s style.
Baby Phat lost momentum after Lee's departure from the business in 2010, but she reacquired the brand in 2019 and began rebuilding it for a new generation. The collaboration with True Religion gives both labels an opportunity to connect their archives and signatures rather than relying exclusively on their original customer base.
For Lee, the partnership also carries a personal dimension. In an interview with Vogue, she described reclaiming a brand she had built as an unusual opportunity, telling entrepreneurs seeking to regain control of their work: 'If you made it once, you can make it again.' Her return to Baby Phat mirrors True Religion's attempt to turn a recognisable heritage into a renewed commercial proposition.
Low-rise denim and crystals lead the collection
The True Religion x Baby Phat range puts low-rise dressing at the centre of its design. The collection includes bootcut and baggy jeans, a micro skirt, cropped baby tees, satin bomber jackets and sportswear decorated with crystals and furry details.
True Religion's familiar heavy stitching and denim construction sit alongside Baby Phat's pink accents, embellished logos and glamorous detailing. The result deliberately embraces the maximalist aesthetic associated with the early 2000s, when visible branding and attention-grabbing clothes were central to celebrity street style.
The collection campaign stars Aniya Harvey and Kayda Bosse, who represent a younger generation of fashion consumers. The choice reflects an attempt to introduce both labels to shoppers who may know Y2K style primarily through social media, vintage fashion and contemporary celebrities rather than personal memories of the era.
The brands are also betting on the return of low-rise silhouettes and more expressive styling. While the trend may not appeal to every shopper, it gives the collaboration a clear visual identity that differs from minimalist fashion and understated denim.
Can nostalgia deliver a billion-dollar business?
True Religion's ambitions depend on more than revisiting its most recognisable designs. The company has pursued younger consumers through musician partnerships, celebrity visibility and collaborations intended to keep the brand in contemporary fashion conversations. Executives have pointed to appearances by figures including Timothée Chalamet, Kylie Jenner and Alix Earle as evidence that its products remain culturally relevant.
The Baby Phat partnership gives the denim label another route into that market, drawing on a shared history while placing new faces at the forefront of the campaign. Early access to the collaboration had already generated strong sales through True Religion's app, according to the company.
However, renewed attention does not guarantee that the labels will sustain growth over several years. Fashion trends change, and nostalgia-driven demand must translate into repeat purchases if it is to support a long-term sales target.
