Premium denim apparel vendor True Religion Apparel Inc.’s 75.6 percent leap in third-quarter profits blew past analysts’ estimates and prompted an increase in its full-year guidance.
For the quarter ended Sept. 30, the jeans and sportswear marketer reported net income of $15.4 million, or 64 cents a diluted share, compared with $8.8 million, or 37 cents a share, in the same year-ago period. Net sales were up 63.9 percent to $79.4 million, from $48.4 million. Analysts polled by Yahoo expected earning per share of 47 cents on sales of $65.8 million.
By division, U.S. wholesale sales increased 53.8 percent to $46.3 million from $30.1 million a year earlier, while international sales grew 3.2 percent to $11.2 million from $10.9 million. Direct sales almost tripled to $21.5 million from $7.2 million.
Quarterly gross margins increased to 58.4 percent of sales, aided by the segment shift mix toward the company’s direct business, which was partly offset by increased sales of previous-season merchandise. The year-ago gross margin was 57.2 percent.
“Our financial position continued to strengthen as we ended the quarter with $55.8 million in cash and cash equivalents, and no debt,” said Jeffrey Lubell, chairman, chief executive officer and creative director. “We are especially pleased with our ability to help fund our growth through our strong operating cash flow.”
The company projected EPS to be $1.78 for the year, up from between $1.61 and $1.65, and for revenue to be about $265 million, up from $242 million. Analysts are looking for earnings of $1.65 on sales of $247.8 million.
For the nine months, the Vernon, Calif.-based firm posted a 67.3 percent increase in net income, to $31.7 million, or $1.31 cents a share, from $18.9 million, or 79 cents a share. Revenue grew 63.4 percent to $197 million from $120.5 million.
The firm;s U.S. sales rose 47.3 percent to $117.2 million, from $79.6 million, while international grew 24.1 percent, to $28 million, from $22.5 million. Direct sales almost tripled to just less than $51 million, from $17.8 million.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia