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.