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.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@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)