Sales up 6.8% at True Religion Apparel in Q2

• The effective tax rate for the quarter was 36.3% as compared to 37.9% in the second quarter of 2011. The 2012 effective tax rate decrease over 2011 is linked to an increase in foreign sales and earnings being taxed at lower rates along with an increase in the estimate of U.S. versus foreign manufactured merchandise.

• Net income attributable to True Religion Apparel, Inc. was $9.8 million, or $0.39 per diluted share based on weighted average shares outstanding of 25.3 million for the second quarter of 2012. For the second quarter of 2011, net income attributable to True Religion Apparel, Inc. was $9.4 million or $0.38 per diluted share, and excluding the litigation settlement and bad debt expenses of $0.05 per share (after tax) was $0.43 per diluted share based on weighted average shares outstanding of 25.0 million.

Management Comments

Jeffrey Lubell, Chairman, Chief Executive Officer and Chief Merchant of True Religion Apparel, Inc., stated, “I am pleased that our largest segment, U.S. Consumer Direct, had a same store sales increase. But, we did not achieve our sales plan due primarily to a weaker response toward our spring and summer merchandise assortment. However, we carefully managed our business throughout the quarter, including the initiation of a semi-annual sale, expanded sales efforts to specialty accounts in the U.S. Wholesale segment, and reinforced overhead cost discipline. These efforts allowed us to exceed our second quarter earnings per share forecast.”

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True Religion Apparel Inc