• Q3 net profit down 8.8% to US$14.1m
  • Net sales up 3.8% to $82.4m
  • Raises FY earnings guidance

Upmarket denim brand True Religion has recorded an 8.8% dip in third quarter profit, but is sufficiently encouraged by its performance to raise its full-year earnings forecast.

The US company said sales had risen 3.8% to US$82.4m in the three months to 30 September, boosted by a 51.9% increase in retail and direct sales, plus a 47.6% surge in international sales.

However, US wholesale revenues slumped 31%, thanks to a planned reduction in sales to off-price retailers and a decline in sales to boutiques and majors.

Operating income was up 1.9% to $22.7m, but net income fell 8.8% to $14.1m, True Religion said.

For the nine-month period, net sales rose 10.7% to $218.2m, while net income fell 3.3% to $32.7m.

True Religion chairman, CEO and chief merchant Jeffrey Lubell said he was pleased with the performance, which he attributed to the "ongoing preference for our brand".

The company raised its full-year guidance, forecasting sales of $295-300m and earnings per diluted share of $1.82-1.86.