True Religion gross margin expands to 57.2% from 54.6%
30 Apr '08
3 min read
True Religion Apparel Inc announced financial results for the fourth quarter and year ended December 31, 2007.
Fourth Quarter Financial Results: • Net sales were $52.7 million, an increase of 73.5% from $30.4 million in the 2006 fourth quarter. Net sales in the Company's U.S. wholesale segment increased 62.4% to $31.8 million from $19.6 million in the prior year. The Company's international wholesale business increased 21.3% to $9.2 million from $7.6 million in the 2006 fourth quarter.
• Net sales for the consumer direct segment, which includes the Company's branded retail stores and e-commerce site, increased 265.8% to $11.5 million from $3.1 million in the prior year. Fourth quarter net sales included $0.2 million of licensing revenue.
• Gross profit in the 2007 fourth quarter was $30.1 million, or 57.2% of net sales, compared to $16.6 million, or 54.6% of net sales, in the fourth quarter of 2006. The improvement in gross margin is primarily the result of the Company's higher margin consumer direct business generating a larger share of total net sales.
• Selling, general and administrative expenses for the 2007 fourth quarter increased 42.1% to $15.4 million from $10.8 million in the 2006 fourth quarter. Selling, general and administrative expenses for the fourth quarter of 2007 included $2.4 million of incremental operating costs for the expansion of the company's consumer direct business.
• Operating income for the 2007 fourth quarter increased 156.8% to $14.7 million, or 27.9% of net sales, compared to $5.7 million, or 18.9% of net sales, in the 2006 fourth quarter. The increase in operating margin is primarily due to higher sales and stronger margins generated in the Company's consumer direct business.
marketing@alchempro.com
