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Branded retail platform perk up in 2006 at True Religion

16 Mar '07

3 min read

Net sales for the 2006 fourth quarter increased 17% to $29.8 million from $25.5 million in the 2005 fourth quarter. Net income grew 32.7% to $4.9 million, or $0.21 per diluted share, compared with net income of $3.7 million, or $0.16 per diluted share for the fourth quarter of 2005. Results in 2005 include a non-recurring legal settlement charge equal to $0.06 per diluted share.

"Our business for the fourth quarter and the full year reflected strong performance in revenue, margins and earnings, and capped a year of growth and continued investment in our future," said Jeff Lubell, Chief Executive Officer of True Religion Apparel Inc.

"We entered into 2007 with a growing design team whose influence is exemplified by a greatly expanded product line, including denim, sportswear and newly licensed products, all of which were well received during the recent tradeshow season in the U.S. and Europe. We also are seeing strong momentum in our branded retail platform, and sales in our stores in Manhattan Beach, Robertson Blvd., Soho, South Beach and Desert Hills have exceeded our expectations."

"Thus far in 2007, we have signed four new leases for stores in Houston, Corte Madera near San Francisco, and Valley Fair in San Jose, plus an outlet store in Woodbury Common, NY, and opened our Miami Beach store. We anticipate that this will be another transformational year for True Religion as we establish our company and brand for long-term growth."

Gross profit in the fourth quarter increased to $16.1 million from $13.0 million in the fourth quarter of 2005. Fourth quarter 2006 gross margins increased to 54.1% compared with 51.1%, in the same period last year.

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