This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

True Religion Apparel Announces Third Quarter 2012 Financial Results

Stocks in this article: TRLG

Mr. Lubell concluded, “True Religion has a strong track record of sales growth and industry-leading profitability and we believe that the Company is well positioned for continued growth. We remain focused on executing our strategic plan: extending our powerful and differentiated brand, driving growth in U.S. Wholesale revenue, increasing our U.S. retail store base and expanding our international business. We are confident our plan will deliver results in the fourth quarter and in 2013 and continue to generate value for our shareholders.”

Year-to-Date 2012 Financial Results

  • Total net sales increased 9.9% to $330.2 million in the first nine months of 2012, from $300.4 million in the prior year period.
  • Gross profit increased 8.2% to $211.4 million in the first nine months of 2012, from $195.3 million in the prior year period. Gross margin decreased by 100 basis points to 64.0%.
  • SG&A expenses increased 9.2% to $158.7 million. The majority of the growth in the SG&A expenses was driven by the costs associated with operating additional U.S. and international retail stores in 2012 as compared to the same period in 2011. As a percentage of net sales, SG&A expenses were 48.0% in the first nine months of 2012.
  • Operating income for the first nine months of 2012 was $52.7 million or 16.0% of net sales. For the first nine months of 2011, operating income was $50.0 million.
  • For the first nine months of 2012, net income attributable to True Religion Apparel, Inc. was $32.5 million, or $1.29 per diluted share based on weighted average shares outstanding of 25.3 million. For the first nine months of 2011, net income attributable to True Religion Apparel, Inc. was $30.5 million or $1.22 per diluted share based on weighted average shares outstanding of 25.0 million.
  • The SG&A expenses for first nine months of 2011 included $1.5 million in litigation settlement expense and $1.2 million in separation costs associated with the resignation of a former executive. Excluding these 2011 costs, the 2011 SG&A expenses were $142.6 million, or 47.5% of the 2011 net sales; the 2011 operating income was $52.7 million, or 17.5% of the 2011 net sales; the 2011 net income attributable to True Religion Apparel, Inc. was $32.2 million; and the 2011 diluted per share was $1.29.

Balance Sheet and Liquidity

As of September 30, 2012, the Company had $51.4 million of cash and cash equivalents and $149.0 million of short and long-term investments, which combined equals $200.4 million. As of September 30, 2011, the Company had $182.2 million of cash and cash equivalents. The Company ended the quarter with no long-term borrowings. The inventory balance as of September 30, 2012 was $64.1 million, an 18.4% increase from September 30, 2011. This increase is primarily the result of an expanded retail store count from 118 retail stores at September 30, 2011 to 147 retail stores at September 30, 2012.

2 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs