By
Reuters
Reuters
Published
Aug 1, 2012
Aug 1, 2012
True Religion lowers forecast as women's segment disappoints
By
Reuters
Reuters
Published
Aug 1, 2012
Aug 1, 2012
True Religion Apparel Inc reported lower-than-expected quarterly sales as women shoppers bought less of its spring and summer merchandise, prompting the premium denim maker to lower its full-year profit outlook.
Photo: True Religion |
True Religion shares were down 13 percent at $22.75 on Tuesday after the bell. They closed at $26.24 on the Nasdaq.
The company said demand for its women's assortment -- which includes jeans and shirts with serape patterns, prints and colored stitching -- fell during the second quarter, forcing it to offer discounts.
"We are still a very prestigious brand. I call it a hiccup, but Wall Street likes to do what they do best ... ," CEO Jeffrey Lubell, who founded the company in 2002, said on a conference call with analysts.
The company outlined plans to turn around the women's segment by adding products at lower prices and improving styles in the high-end category with embellishments and color, before the key holiday selling season.
True Religion sells its namesake jeans priced between $170 and $360 at retail stores, upscale department stores and specialty boutiques.
The company now expects full-year earnings of $1.80 to $1.86 per share, down from its earlier forecast of $1.88-$1.95 per share.
Sales are expected to be in the range of $450 million to $455 million, down from its previous forecast of $450 million to $460 million.
Analysts were expecting a profit of $1.97 per share, on revenue of $467.8 million, according to Thomson Reuters I/B/E/S.
Second-quarter sales at the company rose 7 percent to $104.9 million but still fell short of estimates of $107.3 million.
Sales at its international segment fell 2 percent hit by lower wholesale sales in Korea and Canada.
However, quarterly profit at the company, known for making jeans with twisted seams and low flap pockets, rose to $9.8 million, or 39 cents per share, beating estimates by 4 cents per share.
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