True Religion Shares Soar on Strong Q3

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True Religion Apparel Inc. said late Wednesday that its third-quarter sales grew thanks in large part to a surge in the company’s direct selling segment and e-commerce.


True Religion reported $8.9 million (38 cents per share). Excluding charges related to separation agreements with former executives and an increased tax rate, net income was 42 cents per share, the company said. The company’s co-founder Kymberly Lubell left the company earlier in the year.


The company also added that net income from the period a year earlier is being restated due to incorrectly calculated income tax expenses.


Sales for the Vernon-based premium denim company rose 13 percent to $49 million Analysts polled by Thomson Financial expected a profit of 39 cents per share on revenue of $48 million.


Sales of the company’s consumer direct segment, which includes branded retail stores and e-commerce, rose nearly 1,000 percent to $7.2 million, as the company opened 10 full-price stores and one outlet store during the year.


Domestic wholesale sales were nearly flat at $30 million, hurt by production delays related to “more intricate” fall merchandise, the company said. International sales fell 13 percent to $11 million because of a planned reduction in Japanese sales.


Shares in True Religion closed up 4.6 percent and continued to soar another 9.8 percent in after-hours trading to $17.35.

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