US: Strong sales lift True Religion Q2 profit by 25%
- Q2 profit climbed 25.3% to $9.4m from $7.5m
- Total sales rose 19.6% to $98.3m
- Gross margin was up 140 basis points to 65.5%
Strong demand for its high-end jeans at its retail stores and online have helped True Religion Apparel Inc to a 25.3% jump in second quarter profit.
The results seem to reinforce the company’s strategy that expanding its higher margin direct-to-consumer business is the best way to grow its business.
“The standout performance this quarter was our US Consumer Direct segment, which benefitted from new store openings, a same-store sales increase of 14.8% and consistent operating cost oversight, which combined to deliver a 370 basis point increase in the segment’s operating margin,” said chairman and CEO Jeffrey Lubell.
But while US retail and e-commerce sales rose 41.6% to $58.8m, wholesale revenues fell 18.2% to $21.0m, hurt by “challenging” sales of women’s denim in department stores.
International sales in the three months to 30 June were up 31.4% to $18.1m as the company took more direct control of its business, especially in Canada and Germany.
Help test our new apparel sourcing tool.
International revenue and profit growth proved key to raising third quarter earnings at True Religion Apparel, despite "challenging" trends for women's denim in the US....
- Digitalisation and data to disrupt supply chains
- EU eyes mandatory due diligence for apparel supply
- Unlocks for the future fashion sourcing landscape
- What TTIP might mean for US, EU textiles & apparel
- Geo-political uncertainty and how to survive it
- Li & Fung forms supply chain partnership with PVH
- US Q4 in brief – Finish Line, Oxford Industries
- Levi Strauss and ILO probe Cambodia factory death
- Big data to help US firms improve clothing fit
- Next books first FY profit fall in eight years
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing