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True Religion posts higher profit in first quarter
09 May '08
4 min read
• Net income for the 2008 first quarter was $6.9 million, or $0.29 per diluted share based on weighted average shares outstanding of 24.1 million, compared to $5.2 million, or $0.22 per diluted share based on weighted average shares outstanding of 23.8 million in the 2007 first quarter.
"The first quarter of 2008 marked a continuation of the strong growth True Religion delivered in the second half of 2007," said Jeffrey Lubell, chairman and chief executive officer of True Religion Apparel. "We achieved year over year revenue growth of 47% thanks to the positive customer response to our spring 2008 collection.
Our first quarter results reflect the continued execution within each of our major growth platforms, as we exceeded our internal expectations of our U.S. wholesale business, improved our international performance, and continued to provide our customers with an expanding assortment of sportswear product offerings to complement our core premium denim jean collections. We are confident that we are moving in the right direction to establish True Religion as a truly global, aspirational brand."
Store Openings:
During the 2008 first quarter, True Religion opened 3 new stores, bringing its total store count as of the end of the first quarter to 18 stores. To date in the second quarter, the Company has opened seven new stores, bringing the total store count to 25 stores as of May 8, 2008. The Company anticipates opening at least 10 additional new stores before the end of the year, for a total of at least 35 stores by year end 2008.
2008 Guidance:
The Company now expects that its 2008 net sales will be $220 million to $225 million (as compared to the $210 million to $215 million that it anticipated at the beginning of 2008) and its 2008 EPS will be $1.52 to $1.56 (as compared to $1.48 to $1.52 at the beginning of 2008). The Company's 2008 net sales are expected to increase 27% to 30% compared to 2007 net sales of $173 million. The Company's 2008 diluted EPS is expected to increase 31% to 34% compared to 2007 diluted EPS of $1.16.
The Company's updated EPS guidance reflects an increase in its expected share count, now 24.1 million as compared to 23.7 million at the time of the Company's initial guidance, and a reduced effective tax rate, 41.0 percent versus 42.0 percent; these changes have offsetting impacts to the expected 2008 EPS guidance.
"The first quarter of 2008 marked a continuation of the strong growth True Religion delivered in the second half of 2007," said Jeffrey Lubell, chairman and chief executive officer of True Religion Apparel. "We achieved year over year revenue growth of 47% thanks to the positive customer response to our spring 2008 collection.
Our first quarter results reflect the continued execution within each of our major growth platforms, as we exceeded our internal expectations of our U.S. wholesale business, improved our international performance, and continued to provide our customers with an expanding assortment of sportswear product offerings to complement our core premium denim jean collections. We are confident that we are moving in the right direction to establish True Religion as a truly global, aspirational brand."
Store Openings:
During the 2008 first quarter, True Religion opened 3 new stores, bringing its total store count as of the end of the first quarter to 18 stores. To date in the second quarter, the Company has opened seven new stores, bringing the total store count to 25 stores as of May 8, 2008. The Company anticipates opening at least 10 additional new stores before the end of the year, for a total of at least 35 stores by year end 2008.
2008 Guidance:
The Company now expects that its 2008 net sales will be $220 million to $225 million (as compared to the $210 million to $215 million that it anticipated at the beginning of 2008) and its 2008 EPS will be $1.52 to $1.56 (as compared to $1.48 to $1.52 at the beginning of 2008). The Company's 2008 net sales are expected to increase 27% to 30% compared to 2007 net sales of $173 million. The Company's 2008 diluted EPS is expected to increase 31% to 34% compared to 2007 diluted EPS of $1.16.
The Company's updated EPS guidance reflects an increase in its expected share count, now 24.1 million as compared to 23.7 million at the time of the Company's initial guidance, and a reduced effective tax rate, 41.0 percent versus 42.0 percent; these changes have offsetting impacts to the expected 2008 EPS guidance.
True Religion Apparel Inc
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