Third Quarter 2012 Financial Results
Total net sales increased 9.4% to $118.5 million. Net sales for the Company’s U.S. Consumer Direct segment, which includes the Company’s retail stores and E-commerce business, increased 5.7% to $65.3 million and accounted for 55.1% of the Company’s total net sales for the quarter. Third quarter same-store sales for the 101 stores open at least 12 full months and E-commerce decreased 4.7%. The Company opened three stores, ending the third quarter with 119 retail stores in the United States, compared to 105 as of September 30, 2011.
Net sales for the Company’s U.S. Wholesale segment totaled $29.8 million, a 35.4% increase as compared to the prior year quarter. This is the third consecutive year-over-year quarterly sales increase for this segment. The increase in this segment’s sales was due to increased sales to the Off-Price and Specialty Store channels.
Net sales for the International segment totaled $22.7 million, a 3.0% decrease as compared to the prior year quarter due primarily to a slowdown in wholesale sales in Korea and Germany. Partially offsetting this decrease was a 115% increase in international retail sales as a result of an increase in store count from 13 as of September 30, 2011 to 28 as of September 30, 2012. The Company opened five international stores in the third quarter of 2012.
Gross profit increased 6.9% to $75.0 million. The gross margin rate decreased 150 basis points to 63.3%, due primarily to an increased sales mix of discounted merchandise.
Selling, general and administrative (“SG&A”) expenses increased 11.7% to $56.2 million. The majority of the growth in the SG&A expenses was driven by the costs associated with operating 14 additional U.S. stores and 15 additional international stores in 2012 as compared to the same period in 2011. As a percentage of net sales, SG&A expenses were 47.4% in the third quarter of 2012. The third quarter 2011 SG&A expense as a percentage of net sales was 46.4%.
Operating income was $18.9 million or 15.9% of net sales in the third quarter of 2012. In the third quarter of 2011, operating income was $19.9 million. The decline in operating income is primarily attributable to the decrease in international wholesale sales.
The effective income tax rate for the third quarter of 2012 was 35.9% as compared to 37.5% in the third quarter of 2011.
Net income attributable to True Religion Apparel, Inc. for the third quarter of 2012 was $12.3 million, or $0.49 per diluted share based on weighted average shares outstanding of 25.3 million for the third quarter of 2012. For the third quarter of 2011, net income attributable to True Religion Apparel, Inc. was $12.1 million or $0.48 per diluted share based on weighted average shares outstanding of 25.0 million.
Click here to read more details:
True Religion Apparel Inc.
Apparel/Garments | On 24th Mar 2019
UK-based Barclaycard and Alipay have become partners which will allow ...
Apparel/Garments | On 24th Mar 2019
True Fit, the data-driven platform that made the industry's Fashion...
Information Technology | On 24th Mar 2019
Ecutopia, a powerful platform that enables collaborative trade and...
Indian fashion industry
Cotton consumption will keep growing in the Indian fashion industry
Domestic manufacturers would get an edge over imported products
Max Fashion India
‘Traditional high-street retailers are now willing to offer franchisees to ...
Incorporated in August 1990, Filatex India Ltd manufactures manmade...
Established in 2005, SL Banthia Textiles manufactures coated fabrics....
Established in 1956 with a small beginning, Embee today manufactures a...
INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...
Sensoria is a leading developer of smart garments and IoMe (Internet of...
A team of engineers at the Vanderbilt University has designed a smart...