True Religion's stock price has jumped on the news that it does not plan to extend chairman, CEO and creative director Jeffrey Lubell's employment contract as it continues to explore "strategic alternatives" for the company.

The company said it has decided not to extend Lubell's contract beyond 30 June while it continues with its review of the business.

"In light of this continuing review, the company believes that it would not be appropriate to renew the employment agreement for an additional three-year period at this time. The company further informed Mr Lubell that it would like the opportunity to explore an alternative arrangement with him," True Religion said in an SEC filing.

He will continue in his position as chairman, CEO and creative director.

The company's share price rose 4.66% yesterday to a high of US$28.05 per share.