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» True Religion Apparel CEO Discusses Q3 2010 Results - Earnings Call Transcript
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» True Religion Apparel Q1 2010 Earnings Call Transcript
Please note that all information discussed on the call today is covered under the Safe Harbor provision of the Private Securities Litigation Reform Act. We caution listeners that during this call, True Religion management will be providing financial guidance and making other forward-looking statements regarding future financial results and business opportunities. We encourage you to read the 2011 10-K, the upcoming 2012 second quarter 10-Q and other reports that we file periodically with the SEC. These documents contain a discussion of the risks facing our business, including factors that could cause these forward-looking statements to not come true. The company does not currently intend to update these forward-looking statements except as required by law.With that, it's my pleasure to turn the call over to True Religion Apparel's Chairman and Chief Executive Officer and Chief Merchant, Jeff Lubell. Jeff? Jeffrey Lubell Thank you, Jean, and good afternoon, everyone. Thank you for joining us today as we discuss our financial results for the second quarter 2012. Speaking on the call with me today are Lynne Koplin, our President; and Pete Collins, our Chief Financial Officer. Our total net sales increased by 7% for the second quarter. Our U.S. Consumer Direct and U.S. -- and wholesale segments continued to produce steady net sales growth. And our U.S. Consumer Direct business, which grew by 10%, driven by a 2.4% same-store sales increase and 20 new store openings since the end of the second quarter last year. Our U.S. Wholesale segment net sales increased 7% year-over-year, driven by our men's business, including in the specialty channel. Men's represents 63% of our total Wholesale business so far this year. The International segment's net sales declined by 2%, which was in line with our expectations. We opened 5 International stores in the quarter: 3 in Canada; 1 in Ireland; and another in Australia. Lynne will go into some detail on new initiatives we have put in place in the International segment.
My overall read on the company's results for the second quarter is mixed. While our largest segment, U.S. Consumer Direct, had a same-store sales increase, we did not achieve our sales plan for the segment. Many factors contributed to this outcome, including a weaker response toward our spring and summer merchandise assortment, a more promotional shopping environment and negative economic news which impacted consumer spending. But we managed our business throughout the quarter, including the initiation of a semiannual sale, expanded sales efforts to specialty accounts in the U.S. Wholesale segment and overhead cost discipline. These efforts allowed us to exceed our second quarter earnings per share forecast.Pete will discuss our outlook for the rest of 2012. Although we maintained that the overall retail environment will still be challenging in the fourth quarter, we anticipate that we will be better prepared with the right mix of merchandise between both men's and women's and denim and sportswear. We have rededicated our design efforts to updating our best-selling classics, while also adding a compelling collection of novelty treatments and fabrics that will attract new customers. With that, I would like to turn the call over to Pete, who will discuss the key financial highlights of the quarter. Pete? Peter F. Collins Thank you, Jeff, and good afternoon, everyone. I will begin with some additional color to Jeff's comments and then will provide details on the quarter. Also, I will discuss our updated outlook for the remainder of 2012. As a reminder, we have posted a detailed financial commentary of our segment results for the quarter and year-to-date in the Investor Relations section of our website. Our U.S. Consumer Direct segment's net sales increased by 9.4% to $64.4 million as compared to the prior year. Our same-store sales increased 2.4% in the second quarter, which was below the result we expected. During the quarter, we opened 7 branded retail stores and we relocated 1, bringing the total to 116 stores at quarter end, compared to 102 stores at the end of the second quarter of 2011. Read the rest of this transcript for free on seekingalpha.com