Target’s Universal Thread brand has been improved with better fits, more fashion and reupped quality.
John Haynes
Target Corp.’s $1 billion-plus owned denim brand, Universal Thread, today is relaunching its assortment, with new fits, washes and elevated fabrics. The reboot applies not only to the products themselves, but also to the merchandising and display of the collection with a new in-store denim wall that makes nabbing the perfect pair easier than ever by organizing jeans by rise and fabric. With seven core fits from skinny to wide leg and palazzo, prices range from $28 to $40.
Jill Breeden, SVP and head of product design and packaging at Target, said in an interview that the retailer has invested in several areas to boost the fashion quotient, quality and comfort of Universal Thread. The styles were designed by Target’s in-house team, which includes members who previously worked at Levi’s, Calvin Klein Jeans and Rag and Bone, among other labels.
Breeden said the retailer poured money into areas such as fabric innovation, supply chain speed and technology. The latter is embedded into articles of clothing, for example, each Universal Thread item features a digital ID via EON, allowing consumers to learn more about sustainability and connecting them to third party resale sites should they wish to sell their jeans in the future. This makes Universal Thread Target’s first circular apparel brand, Breeden told me.
“You scan it on your phone and it pulls up a page that talks to you about all the different sustainability attributes, not just for that item, but also for the approach to the brand itself,” Breeden said. “It’s a really cool technology where you can learn about the things we’re building-in because from design to sourcing to manufacturing, we’re taking the sustainability aspect of the product to heart as we set up for a circular future.”
Asked whether Target is considering creating its own resale capabilities as other retailers such as Anthropologie, which launched Nuuly, Breeden said, “There’s many things always on the radar. We did a denim take-back event for the first time this year, so that was an interesting step for us for the mechanics of that.”
Target’s incoming CEO Michael Fiddelke is planning to lean into the retailer’s design strength, pairing on-trend products with “an incredible shopping experience,” the retailer said, adding that Fiddelke is pushing for a return to style and design with three areas of focus: reclaiming Target’s merchandising authority, delivering an elevated shopping experience in-store and online, and investing in the future with technology.
Target’s owned brands throughout the store generate more than $30 billion in annual sales. Over 10 brands generate $1 billion-plus annually and four exceed $3 billion. Universal Thread remains a cornerstone of Target’s women’s apparel portfolio, driving both style leadership and consumer loyalty. Cat & Jack kids clothing is the largest apparel brand, Breeden said.
Universal Thread’s reimagining was born of the COVID 19 pandemic. “Universal Thread launched in 2018 and it was immediately resonant and very successful with consumers,” Breeden said. “When we began with the brand, we had a very broad range of fits, which served us well when we first launched but over time we began to see some decision fatigue set in with consumers.
Target went back to the drawing board for Universal Threads.
John Haynes
“We made a decision to get more focused and streamlined in the silhouettes we were offering. That worked for a little while, however, as we moved into the pandemic what we saw was that nobody moved out of wearing legging and sweatpants for a couple years,” Breeden said.
She added that the consumer’s mentality shifted in terms of what she wanted out of her clothing since she had been living in comfy garments and working remotely for so long; shoppers weren’t willing to give up the ease they had come to know, which impacted not only fits but fabrications.
“They wanted a broader range of fits – and looser fits,” Breeden said. “Also, trend signals were moving in a direction where bottoms were becoming baggier anyway and those things together made it really clear that our assortment needed to evolve.”
Target moved quickly to remedy the situation. In 2023, the retailer introduced what it calls “the 90s baggy,” a fit that took off from the minute the mass merchant launched it, striking a chord with consumers, Breeden said.
“It was hitting in the direction they were moving in and it was on trend,” she explained. “It became a core staple and has been one of our top five fits ever since it was introduced. That amount of runaway success allowed us to think differently and more boldly about the assortment.
“It allowed us to deliver the elevated quality the consumer would expect from a more premium brand. It really just goes to show that Universal Thread can deliver the quality that one can find in so many national brands. It can go toe to toe with national brands,” Breeden claimed.
A Universal Thread display.
John Haynes
Target positioned Universal Thread alongside Levi’s at the Paramas, N.J. Bergen Town Center store, for example, where the two denim brands stood side by side. “We’re really able to stand on our own two feet from an owned-brand perspective,” Breeden said. “We didn’t just rely on the silhouettes that are trending now. We did major fabric research development.”
Fabrics have stretch and recovery, which allows for more washes in the machine to ensure longevity. And to make sure that the jeans fit on human bodies, Target tested on real people rather than relying on the sizing charts that many retailers and brands use. Target did in-person try-on and feedback events across sizes and ages, Breeden said, adding that the insights directly shaped product refinements, mirroring the approach of leading global denim brands.
“In denim, you have to get the fabric and fit together to make it perfect,” she said. “We wanted to be cognizant of that and made sure we tested on a range of body types.” Target then incorporated that feedback into samples. “It was a very rigorous approach to making sure the art and the science were totally dialed in to be able to make a relaunch of this magnitude.”
Listening to consumers is paying off in other ways. Standing behind one of the key fabrics women responded to allowed the retailer to “give her a range of leg shapes with consistent rises, Breeden said. “Doing that allowed us to pull levers in terms of which silhouette we went into and which wash we went into. Since the jeans are sharing a similar base fabric we were able to pull levers and react to what she wanted very quickly.”
In fact, fabric platforming reduced lead times by 25%, enabling faster responses to shifts in trends while on-hand raw materials allowed rapid innovation such as last fall’s viral leopard-print baggy jean, which drove millions in incremental sales, Breeden said, adding, “That’s something we’re really excited about and it helps us drive the business.”
Target hasn’t been immune to the macro-economic trends impacting retailers in the U.S. and abroad. For the most recent second quarter ending in August, net sales of $25.2 billion in the second quarter were down 0.9 percent over last year, reflecting a merchandise sales decrease of 1.2 percent, the company said on the investor portion of its web site.
Comparable sales decreased 1.9 percent in the second quarter, reflecting a comparable store sales decline of 3.2 percent, partially offset by comparable digital sales growth of 4.3 percent. Second quarter operating income of $1.3 billion was 19.4 percent lower than last year.
Forbes in September said Target’s per share price had decreased approximately 40% over the past year. “This decline is painful, yet not entirely unexpected,” Forbes said. “Earnings growth has stagnated, competition is increasing, and the company is getting ready for a change in leadership. Q2 2025 brought a slight earnings beat, but the broader scenario remains one of sluggish sales and shrinking margins.”
Wall Street analysts remain divided about Target. “Hold” is the most common consensus rating with an average 12-month price target of between $102 and $110, and a range of $80 to $168 per share. Target closed at 97.11, down .66% on Tuesday.
The retailer hopes its emphasis on design continues to attract consumers, especially those looking for a good prices and high perceived value in products.
Dialing up the fashion informed Universal Thread’s ethos and distinguished it from other brands in Target’s owned portfolio for women. “This emphasized the importance of the relaunch that we’re having,” Breeden said. “It set the tone for the casual cool sort of California-inspired vibe of Universal Thread and it’s the underpinning for all the styling cues you would do for all of the other types of items that surround [the jeans] within the brand.”
Universal Threads isn’t just bottoms, Breeden stressed. There’s dresses, tops and jackets, too, including a women’s denim mini tank light wash dress, for $24, and a denim button down ankle dress, $34. Target’s other women’s owned brands include Ava and Viv, a plus-size clothing collection, and Wild Fable, a trendy line.
“Whether it’s technology, other resources, tools or intelligence, we’re always thinking about how to continue to be ‘tip of the spear’ when it comes to style and design,” Breeden said. “It’s super important to us and something we continue to really focus on as we build the capabilities within the design unit in particular.”
