True Religion says profit rose slightly in third quarter
True Religion Inc., the struggling luxury denim maker that recently put itself up for sale, reported a slight rise in third-quarter profit due to growth in its wholesale business.
In the three months ended Sept. 30, the Vernon retailer said profit was $12.3 million, or 49 cents a share, a 1.7% rise from $12.1 million, or 48 cents a share, a year earlier.
Total sales jumped 9.4% to $118.5 million. Its wholesale segment, which sells to off-price and specialty retail stores, grew 35.4% to $29.8 million.
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Jeffrey Lubell, chief executive of True Religion, lauded the company’s expansion in international and domestic markets.
“While our same-store sales fell short of our expectations, we were able to exit the quarter with less slow-moving merchandise,” Lubell said. “This puts us in a strong position heading into the holiday season.”
That’s good news for the designer denim company that was once highly successful in peddling its $200-plus jeans to celebrities and well-off shoppers who wanted to show off their taste and bank account through their pants. But lately True Religion has been surpassed by younger rivals, many founded by former executives of the company.
Last month, True Religion announced that it was exploring strategic alternatives, including a possible sale of the company.
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