• 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.