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True Religion 3Q profit slips, outlook weak

By: tiffany lilypine
For : dfsdgsdg
Date Added : November 11, 2010 Views : 79
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Shares of True Religion Apparel Inc.Cheap Tiffany Charmsdropped in Wednesday aftermarket trading after the jeans maker reported a third-quarter profit that fell short of Wall Street expectations, due in part to a decline in its wholesale business. The company also forecast a smaller full-year profit than analysts expect.

"Overall, we did not make the progress that we had expected to in the quarter," said Chairman and Chief Executive Jeffrey Lubell.

For the July to September period, True Religion reported net income of $11.8 million, or 48 cents per share, down from a profit of $14.1 million, or 58 cents per share, in the same quarter a year ago.

Sales rose 12.5 percent to $92.8 million.

For the latest quarter, analysts surveyed by Thomson Reuters had forecast a profit of 58 cents per share on sales of nearly $94.1 million.

Sales for True Religion's U.S. consumer direct segment, including branded retail stores and the company's web site, surged 42 percent to $46.3 million. Sales rose 9 percent at the chain's 63 stores open at least a year.

But sales at the U.S. wholesale segment fell nearly 16 percent to $26.9 million. The company cited a slowdown in sales of women's premium denim apparel at department stores.

The Vernon, Calif.-based company said it expects a full-year profit of $1.73 to $1.78 per share, on revenue of $355 million to $360 million. Analysts expect a profit of $2.06 on revenue of $363.1 million, on average.

True Religion reported results after its shares rose 24 cents to close at $20.13. In aftermarket trading, the stock lost $1.61, or 8 percent, to drop to $18.52.

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