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True Religion gross margin expands to 57.2% from 54.6%
30 Apr '08
3 min read
True Religion Apparel Inc announced financial results for the fourth quarter and year ended December 31, 2007.
Fourth Quarter Financial Results:
• Net sales were $52.7 million, an increase of 73.5% from $30.4 million in the 2006 fourth quarter. Net sales in the Company's U.S. wholesale segment increased 62.4% to $31.8 million from $19.6 million in the prior year. The Company's international wholesale business increased 21.3% to $9.2 million from $7.6 million in the 2006 fourth quarter.
• Net sales for the consumer direct segment, which includes the Company's branded retail stores and e-commerce site, increased 265.8% to $11.5 million from $3.1 million in the prior year. Fourth quarter net sales included $0.2 million of licensing revenue.
• Gross profit in the 2007 fourth quarter was $30.1 million, or 57.2% of net sales, compared to $16.6 million, or 54.6% of net sales, in the fourth quarter of 2006. The improvement in gross margin is primarily the result of the Company's higher margin consumer direct business generating a larger share of total net sales.
• Selling, general and administrative expenses for the 2007 fourth quarter increased 42.1% to $15.4 million from $10.8 million in the 2006 fourth quarter. Selling, general and administrative expenses for the fourth quarter of 2007 included $2.4 million of incremental operating costs for the expansion of the company's consumer direct business.
• Operating income for the 2007 fourth quarter increased 156.8% to $14.7 million, or 27.9% of net sales, compared to $5.7 million, or 18.9% of net sales, in the 2006 fourth quarter. The increase in operating margin is primarily due to higher sales and stronger margins generated in the Company's consumer direct business.
Fourth Quarter Financial Results:
• Net sales were $52.7 million, an increase of 73.5% from $30.4 million in the 2006 fourth quarter. Net sales in the Company's U.S. wholesale segment increased 62.4% to $31.8 million from $19.6 million in the prior year. The Company's international wholesale business increased 21.3% to $9.2 million from $7.6 million in the 2006 fourth quarter.
• Net sales for the consumer direct segment, which includes the Company's branded retail stores and e-commerce site, increased 265.8% to $11.5 million from $3.1 million in the prior year. Fourth quarter net sales included $0.2 million of licensing revenue.
• Gross profit in the 2007 fourth quarter was $30.1 million, or 57.2% of net sales, compared to $16.6 million, or 54.6% of net sales, in the fourth quarter of 2006. The improvement in gross margin is primarily the result of the Company's higher margin consumer direct business generating a larger share of total net sales.
• Selling, general and administrative expenses for the 2007 fourth quarter increased 42.1% to $15.4 million from $10.8 million in the 2006 fourth quarter. Selling, general and administrative expenses for the fourth quarter of 2007 included $2.4 million of incremental operating costs for the expansion of the company's consumer direct business.
• Operating income for the 2007 fourth quarter increased 156.8% to $14.7 million, or 27.9% of net sales, compared to $5.7 million, or 18.9% of net sales, in the 2006 fourth quarter. The increase in operating margin is primarily due to higher sales and stronger margins generated in the Company's consumer direct business.
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