Los Angeles Business Journal

Mixed Quarter at True Religion

By Deborah Crowe Wednesday, August 1, 2012

Shares of True Religion Apparel Inc. fell more than 21 percent on Wednesday after the designer denim maker and retailer reported a mixed second quarter and lowered its full-year guidance.

Net income rose 4 percent to $9.8 million (39 cents a share), which was 4 cents a share higher than analysts forecast. But 7 percent revenue growth to $105 million fell short of Wall Street expectations of $107 million.

The Vernon company saw slower sales of spring and summer women’s merchandise, and now expects full-year profit of $1.80 to $1.86 a share, down from its earlier forecast of $1.88 to $1.95. That led analyst Dorothy Lakner of Claris & Co. to cut her recommendation on shares from “buy” to “above average”