News Flash

Branded retail platform perk up in 2006 at True Religion

16 Mar '07

3 min read

Selling, general and administrative expenses in the quarter increased to $9.1 million from $4.8 million in the 2005 fourth quarter, primarily reflecting ongoing infrastructure enhancements including personnel, facilities, warehousing, replenishment systems, legal fees associated with new distributor agreements and trademarks, SOX 404 implementation, marketing initiatives and both retail pre-opening and normal operating expenses based on the increased number of stores.

For the year ended December 31, 2006, net sales increased 36% to $139.0 million from $102.6 million in the same period last year. Excluding unusual expenses related to the balance of the Indigo Group arbitration settlement and legal and professional fees related to the company's ongoing engagement of Goldman Sachs, which together amounted to approximately $1.9 million after income taxes, or $0.08 per diluted share, net income grew 34.9% to $26.3 million, or $1.12 per diluted share. On a reported basis, net income rose 25.6% to $24.4 million, or $1.04 per diluted share, versus $19.5 million, or $0.84 per diluted share for the year ended December 31, 2005.

Management believes that including non-GAAP net income and net income per diluted share for the current period provides a useful and relevant measure for comparative year-over-year operating performance. Refer to the attached table for details regarding the basis for the adjusted net income per diluted share calculation.

Gross profit for the 2006 fiscal year was $73.6 million, compared with $52.6 million last year. Gross margins for the period increased to 53.0% from 51.3% in fiscal 2005.

Selling, general and administrative expenses for the 2006 fiscal year were $32.7 million, compared with $18.6 million in the prior year.

True Religion Apparel Inc

More True Religion Apparel Inc News... More Fashion News - United States Of America...