Nov 8, 2010
True Religion Q3 misses Street, gives weak FY outlook
Nov 8, 2010
(Reuters) - True Religion Apparel Inc (TRLG.O) posted lower-than-expected quarterly results on weak U.S. wholesale sales and lower gross margins, and gave a full-year outlook below market expectations, sending its shares down 7 percent.
True Religion -- best known for its namesake jeans that can cost as much as $300 in specialty boutiques and upscale department stores -- expects 2010 profit of $1.73-$1.78 a share. Analysts were looking for $2.06 a share, according to Thomson Reuters I/B/E/S.
The company posted third-quarter net income of $11.8 million, or 48 cents a share, compared with $14.1 million, or 58 cents a share, a year ago.
Net sales increased 12.5 percent to $92.8 million.
Analysts, on average, were expecting earnings of 58 cents a share, before special items, on revenue of $94.08 million, Gross margins fell to 62.1 percent from 64.7 percent partly on lower initial markup on women's jeans due to competitive pricing.
Shares of the company were down 7 percent after the bell. They closed at $20.13 on Wednesday on Nasdaq.
(Reporting by Mihir Dalal in Bangalore; Editing by Vyas Mohan)
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