True Religion Reports Strong 1st-Quarter Results
Vernon, Calif.–based premium-denim brand True Religion released its first-quarter financial results on May 5, and Wall Street liked it. Total net sales for the quarter were $63.6 million—up more than 19 percent from the same quarter one year ago. Gross profit for the quarter rang in at $38.7 million, up from $30.5 million in 2008. Net income increased 9.8 percent to $7.6 million from $6.9 million in the 2008 first quarter. True Religion’s stock shot up on the news, closing on May 5 at $17.80 per share and reaching $22.27 per share the following day.
“Despite the challenging economic environment, we remained committed to our strategy of continually delivering innovative jeans, sportswear and licensed products, reaching more consumers through our branded retail stores and wholesale partners and building awareness of the True Religion brand worldwide,” said Jeffrey Lubell—chairman, chief executive officer and chief merchant of True Religion Apparel Inc.—in a statement. “Our integrated approach to growth enabled us to increase first-quarter revenues by 19 percent and net income by 10 percent over the prior-year period.”
During the 2009 first quarter, True Religion opened seven new stores, bringing its total store count as of March 31 to 49 stores, compared with 18 stores at March 31, 2008. In April 2009, True Religion opened two new stores, bringing the total store count to 51 stores. Future stores are in the works, with an anticipated 16 additional new stores planned by year-end 2009, for a total of 67 branded retail stores.
The company reiterated its guidance for the 2009 fiscal year, with net sales expected to reach $290 million to $297 million. —Erin Barajas
