True Religion Weaves a Fabulous Q3
- Posted by Danny
- on November 1st, 2011
The denim extraordinaire beats the Street as sales surge; will boost Chinese presence.
With a lucky #7 ranking in the just released November BeanScreen, True Religion ($TRLG) reported Q3 earnings after the bell today that were quite impressive in our view. Beating EPS estimates by about 3 cents, the high-end jean maker saw strong results from its retail stores and online business. Same stores sales open at least a year rose 10.2%.
Here are some other Q3 highlights:
- Revenue +16.8% to $108.4 mil
- Retail store + online biz revs +33.5% to $61.8 mil
- International revs +30.2% to $23.5 mil
- U.S. wholesale revs -18% to $22 mil
- Adj. net income +9.3% to $12.9 mil
- Gross margins increased to 64.8%
- SG&A expenses +28.3% to $50.3 mil
- Cash + equivalents of $182.2 mil and no debt
- To open 5 more U.S. retail stores in 2011
TRLG also announced that “it granted the Envols International Trading Co exclusive distributorship in China and non-exclusive distributorship in Hong Kong through an agreement that extends to December 2016. Envols, known for expanding the wholesale and retail presence of the Giorgio Armani brand in China, will fund and operate True Religion Brand Jeans retail stores, shop-in-shops and other premium retail concepts in the region.”
We’ve bought and sold shares in TRLG a few times over the last couple years, but have kept a strong core position at a cost basis of about $19.50. After this latest earnings report, it apears that TRLG’s fundamentals continue to be solid and healthy.
The second of our niche apparel faves to report this month will be The Buckle ($BKE) on 11/17. We’re expecting a strong report from them as well.
sources: True Religion profit up in 3Q to beat - Yahoo! Finance (AP)
True Religion Q3 beats; to boost China presence – Reuters
True Religion Apparel Announces Third Quarter 2011 Financial Results – Y! Finance
disclosure: we currently own shares in TRLG and BKE
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Daniel Miller and Jason Robinson are self taught investors based in Daphne, Alabama, and are the co-founders of the WallStreetBean. Neither one of them are professional investors - just two regular guys who want to share their investing ideas and thoughts with others. More