True Religion 1Q profit rises 10 percent

VERNON, Calif. — True Religion Apparel Inc. posted a net income gain
of 10 percent in the first quarter as sales of the company's cheap
jeans and sportswear rose 22 percent in the quarter.

The clothing maker said Tuesday it earned $8.4 million, or 34 cents
per share, in the quarter that ended on March 31. That's up from net
income of $7.6 million, or 32 cents per share, a year earlier.

Earnings beat analysts' prediction for 33 cents per share on revenue
of $74 million, according to Thomson Reuters.

CEO Jeffrey Lubell said the company was pleased with its results,
noting that its consumer direct segment increased sales 68.1 percent to
$38.8 million through store openings and growth in sales at stores open
at least a year. Sales at the company's 46 stores open at least a year
grew 18.7 percent in the quarter. That figure is considered a key gauge
of a retailer's health because it measures growth at existing locations,
rather than new ones.cheap
womens jeans

International sales grew 22.8 percent to $13.8 million, while
wholesale sales dropped 16.5 percent to $24.2 million.

True Religion, based in Vernon, Calif., opened six new stores in the
quarter. At the end of March, it operated 76 stores. The company expects
to open 24 more new stores this year.

True Religion shares fell $2.07, or 6.3 percent, to close at $30.66
on Tuesday. In after-hours trading, shares fell $1.61, or 5.3 percent,
to $29.05.

Earlier in the day, Lazard Capital Markets analyst Todd Slater
downgraded his rating to "Hold," saying the stock is fairly valued.Christian
Audigier