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Q4 net sales up 19.5% at True Religion
28 Feb '11
4 min read
• Operating income totaled $26.2 million, up 9.7% from the fourth quarter of last year. Operating margin was 23.6% in the fourth quarter of 2010 versus 25.7% in fourth quarter of 2009. The operating margin was impacted primarily by the increase in SG&A expenses in the International segment associated with new wholesale sales teams in Asia Pacific and Europe, the opening of four new stores, and new Asia Pacific and European regional offices.
• The effective tax rate for the quarter was 40.0% as compared to 38.9% in the fourth quarter of 2009. The 2010 effective tax rate increased due to a decrease in the value of state deferred tax assets, which is linked to an upcoming change in California income tax apportionment factors.
• Net income attributable to True Religion Apparel, Inc. increased to $15.8 million, or $0.63 per diluted share based on weighted average shares outstanding of 25.1 million, as compared to $14.6 million, or $0.59 per diluted share based on weighted average shares outstanding of 24.8 million in the 2009 fourth quarter.
Management Comments
"Fourth quarter results were a reflection of the changing mix of our business model. U.S. Consumer Direct, our largest segment, performed very well, generating a 7.2% same-store sales increase and strong operating profit growth," stated Jeffrey Lubell, Chairman, Chief Executive Officer and Chief Merchant of True Religion Apparel, Inc. "In our International segment, our newly opened stores in Tokyo, London, Cologne and Toronto were well received, and the retail sell-through of our merchandise continues to be positive. This quarter's International sales growth supports our decision to take more direct control of key markets in order to effectively manage the business for long-term success and capture the very large opportunities that exist for our brand. Overall, we remain very confident and committed to our business strategy."
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• The effective tax rate for the quarter was 40.0% as compared to 38.9% in the fourth quarter of 2009. The 2010 effective tax rate increased due to a decrease in the value of state deferred tax assets, which is linked to an upcoming change in California income tax apportionment factors.
• Net income attributable to True Religion Apparel, Inc. increased to $15.8 million, or $0.63 per diluted share based on weighted average shares outstanding of 25.1 million, as compared to $14.6 million, or $0.59 per diluted share based on weighted average shares outstanding of 24.8 million in the 2009 fourth quarter.
Management Comments
"Fourth quarter results were a reflection of the changing mix of our business model. U.S. Consumer Direct, our largest segment, performed very well, generating a 7.2% same-store sales increase and strong operating profit growth," stated Jeffrey Lubell, Chairman, Chief Executive Officer and Chief Merchant of True Religion Apparel, Inc. "In our International segment, our newly opened stores in Tokyo, London, Cologne and Toronto were well received, and the retail sell-through of our merchandise continues to be positive. This quarter's International sales growth supports our decision to take more direct control of key markets in order to effectively manage the business for long-term success and capture the very large opportunities that exist for our brand. Overall, we remain very confident and committed to our business strategy."
Click here for more details.
True Religion Apparel Inc
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