Home / Knowledge / News / Apparel/Garments / Consumer Direct achieves same-store sales growth of 6.7%, True
Consumer Direct achieves same-store sales growth of 6.7%, True
04
Aug '10
True Religion Apparel, Inc. announced financial results for the three and six months ended June 30, 2010.

Second Quarter 2010 Financial Results

• Total net sales were $82.2 million, an increase of 14.0% as compared to $72.1 million in the second quarter of 2009.
• Net sales for the Company's U.S. Consumer Direct segment, which includes the Company's branded retail stores and e-commerce site, increased 47.2% to $41.5 million as compared to $28.2 million in the prior year period. Second quarter same-store sales for the 56 stores open at least 12 months increased 6.7%. The Company operated 81 branded stores as of June 30, 2010, compared to 59 as of June 30, 2009. The U.S. Consumer Direct segment's net sales equaled 50.5% of the Company's total net sales in the second quarter of 2010.
• Net sales for the Company's U.S. Wholesale segment totaled $25.7 million, a 16.7% decrease as compared to $30.8 million in the prior year period. The Company's sales to full-price accounts decreased 13.3%, which exceeded our plan. Net sales to Majors were below plan, but the boutiques channel achieved increased net sales for the first time in nine quarters. Also, the Company's net sales to the off-price channel decreased by $2.3 million, or 24.7% which is consistent with our 2010 business plan.
• Net sales for the Company's International segment increased 14.1% to $13.8 million as compared to $12.1 million in the prior year period.
• Net sales included $1.2 million of licensing revenue as compared to $1.0 million in the same period last year.
• Gross profit was $52.7 million, or 64.1% of net sales, compared to $44.8 million, or 62.1% of net sales, in the second quarter of 2009. The overall improvement in gross margin was primarily due to the ongoing sales mix shift toward the Company's higher-margin U.S. Consumer Direct segment.
• Selling, general and administrative ("SG&A") expense increased 51.5% to $40.7 million as compared to $26.9 million in the prior year period. As a percentage of net sales, SG&A increased to 49.5% from 37.3% in the same period a year ago. The majority of the year-over-year growth in SG&A expenses was driven by the costs associated with operating 22 additional stores in the second quarter of 2010 as compared to the same period in 2009, as well as $4.5 million ($2.9 million net of income tax or $0.12 per diluted share) of separation costs. In addition, SG&A expenses for the Company's U.S. Wholesale and International segments increased primarily due to additional spending to support company-wide growth plans, including opening the Company's first international full-price retail stores in Tokyo and London. SG&A excluding the separation costs would have been $36.2 million, or 44.0% of net sales.
• Operating income decreased 33.2% to $12.0 million as compared to $17.9 million in the prior year period. Operating income was 14.6% of net sales in Q2 2010 versus 24.9% in Q2 2009. The U.S. Consumer Direct segment's operating margin increased by 70 basis points due to greater leverage from the same-store sales increase. Operating margins were primarily impacted by costs associated with the former president's separation agreement, as well as the U. S. Wholesale sales decrease and other spending to support company-wide growth plans. Operating income excluding the separation costs would have been $16.5 million or 20.1% of net sales.

Must ReadView All

Textiles | On 30th Mar 2017

India Inc should work for July 1 GST roll out: Fin sec

The Goods and Services Tax (GST) will take India into a very exciting ...

Textiles | On 30th Mar 2017

Lok Sabha approves 4 supplementary GST legislations

The Lok Sabha has approved four supplementary Goods and Services Tax...

Courtesy: ShopKeep

Information Technology | On 30th Mar 2017

Shopkeep partners with software provider BigCommerce

ShopKeep, the cloud-based technology solution that transforms an iPad ...

Interviews View All

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search