Strong mens biz drives True Religion Apparel sales growth
08 Aug '07
4 min read
True Religion Apparel Inc announced financial results for the second quarter ended June 30, 2007. Net sales for the 2007 second quarter were $35.7 million, increasing 16.3% from $30.7 million in the 2006 second quarter.
True Religion's consumer direct segment, which includes the company's branded retail stores and e-commerce operation, increased its net sales significantly to $6.5 million versus $0.7 million in the second quarter of 2006.
The increase primarily reflects the expansion of retail stores, with six full-price stores and two outlets open in the second quarter of 2007. Last year, the company had one full-price store open in the second quarter.
Sales in the company's U.S. wholesale segment in the 2007 second quarter were $24.4 million versus $22.2 million last year.
The international wholesale business posted sales of $4.7 million in the 2007 second quarter versus $7.8 million in the comparable period in 2006, due partly to an anticipated year-over-year decrease in sales to Japan and the United Kingdom, as well as an earlier start of Fall shipments in 2006 versus 2007.
Primarily reflecting strong net sales growth in the consumer direct segment, gross profit in the 2007 second quarter increased to $20.4 million from $16.4 million in the second quarter of 2006.
Additionally, given the company's high gross margins of 75.5% in its consumer direct segment, second quarter 2007 consolidated gross margin grew to 57.1% compared with 53.2% in the same period last year.
“We have hit the mid-year point with great stride, with growth on several fronts as we continue our strategy toward becoming a global aspirational brand known worldwide for superior denim and an innovative collection of casual luxury fashion and accessories,” said Jeffrey Lubell, chairman and chief executive officer of True Religion Apparel.
“Our branded retail business is prolific with enviable sales and margins, and we are above plan with 15 stores targeted by year end. Also during the quarter, we added two key new executives, our VP for real estate development and our general counsel."
"On the product front, we announced licensing deals for handbags and swimwear and recently signed a new deal for a fragrances line. Looking ahead, we see a strong selling season as we introduce the newest elements of our fall collection and our first licensed products to our customers.”
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
