The brand began as a division within Cole of California, the knitwear company founded by Anne Cole's father, Fred Cole; Anne Cole (1926–2017) joined in sales and marketing in 1951, when the brand attracted celebrities such as Esther Williams, Elizabeth Taylor and Marilyn Monroe. Among her designs was the "Scandal Suit," a one-piece with mesh inserts that became the first swimsuit to break $1 million in sales in 1964. In 1982 she launched her own eponymous brand, Anne Cole Swimwear.
The tankini was designed to offer the coverage of a one-piece with the flexibility of a two-piece, and its success led to derivative styles like the camikini and the bandeaukini. The brand expanded into activewear with Anne Cole Active in 2021, and is currently owned by InMocean.