Home / Knowledge / News / Apparel/Garments / True Religion to raise full year 2008 guidance
True Religion to raise full year 2008 guidance
08
Nov '08
True Religion Apparel Inc announced financial results for the three and nine months ended September 30, 2008. Net sales in the third quarter of 2008 were $79.4 million, an increase of 63.9% from $48.4 million in the third quarter of 2007. Net sales in the Company's U.S. wholesale segment increased 53.8% to $46.3 million from $30.1 million in the prior year period. The Company's international wholesale segment's net sales increased 3.2% to $11.2 million from $10.9 million in the 2007 prior year period.

Net sales for the consumer direct segment, which includes the Company's branded retail stores and e-commerce site, increased 198.2% to $21.5 million from $7.2 million in the prior year period. The Company operated 36 branded stores as of September 30, 2008, compared to 13 as of September 30, 2007. Third quarter 2008 net sales included $0.4 million of licensing revenues.

Gross profit in the third quarter of 2008 was $46.4 million, or 58.4% of net sales, compared to $27.7 million, or 57.2% of net sales, in the third quarter of 2007. The overall improvement in gross margin reflects the ongoing segment mix shift towards the Company's higher-margin consumer direct business, partially offset by increased sales of prior season merchandise to select off-price retailers.

Operating income for the 2008 third quarter increased 46.4% to $22.3 million, or 28.1% of net sales, from $15.2 million, or 31.4% of net sales, in the 2007 third quarter. The year-over-year reduction in operating margin was primarily driven by the decrease in the U.S. Wholesale segment's gross margin and the incremental expense in connection with the 2008 Fall National print campaign.

True Religion's effective tax rate for the third quarter of 2008 was 31.1% compared to 44.0% for the third quarter of 2007. During the third quarter, the Company implemented a tax planning strategy that retroactively changed its filing status in certain states which reduced the Company's tax provision by $1.5 million, and increased its earnings per diluted share by $0.06. Additionally, the Company finalized its 2007 tax returns, which included additional analysis of its Federal and State tax obligations; as a result of this analysis, the Company reduced its income tax provision in the third quarter of 2008 by $0.6 million, which increased its earnings per diluted share by $0.03.

Net income for the 2008 third quarter increased 75.8% to $15.4 million, or $0.64 per diluted share based on weighted average shares outstanding of 24.2 million, from $8.8 million, or $0.37 per diluted share based on weighted average shares outstanding of 24.0 million in the 2007 third quarter.

Net sales for the first nine months of 2008 were $197.0 million, an increase of 63.4% from $120.5 million in the prior year period. Net sales in the Company's U.S. wholesale segment increased 47.3% to $117.2 million from $79.6 million in the prior year period. The Company's international wholesale segment's net sales increased 24.1% to $28.0 million from $22.5 million in the first nine months of 2007.


Must ReadView All

UK retail firms urge Hammond to ease business rates burden

Textiles | On 20th Nov 2017

UK retail firms urge Hammond to ease business rates burden

Top British retail company CEOs have urged UK finance minister...

L-R: Surya Ajay Agarwal (Director - Donear), Vikram Mahaldar (MD - OCM) & Rahul Rajendra Agarwal (Director - Donear)

Textiles | On 20th Nov 2017

Promoters of Donear Group acquire OCM Woolen Mills

The promoters of Mumbai-based Donear Group have announced the...

Courtesy: Cornell

Textiles | On 20th Nov 2017

Cornell’s tech allows customisation of woven fabrics

Cornell Professor Steve Marschner and Rhode Island School of Design...

Interviews View All

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search