True Religion Reports 16% Net Sales Increase
VERNON, Ca. – The five-year-old premium denim brand True Religion Apparel is reporting a second quarter net sales increase of 16.3 percent over the same time last year from $30.7 million to $35.7 million. The company is crediting both their consumer direct segment and their men’s business for the growth.
Net sales in the consumer direct segment, which includes True Religion’s own branded retail stores and its web sales activity, increased from $0.7 million in the second quarter of 2006 to an impressive $6.5 million this quarter, during which six stores opened.
Sales in the international wholesale business were down, however: of $4.7 million this quarter compared to $7.8 million in the second quarter of 2006.
Gross profit in the second quarter this year increased to $20.4 million versus $16.4 million the same time last year.
“Our branded retail business is prolific with enviable sales and margins, and we are above plan with 15 stores targeted by year end,” said Jeffrey Lubell, the company’s founder and CEO. “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.”
Last June, MRketplace.com reported that although True Religion had retained Goldman Sachs for strategy assistance, the company opted to stick with its own growth plans, which included more retail stores and more wholesale and licensing.
