True Religion 3Q profit nearly doubles

VERNON, Calif. - Jeans maker True Religion Apparel Inc. said Thursday its third-quarter profit nearly doubled as sales of its jeans grew domestically, overseas and online.

For the three-month period ending Sept. 30, True Religion said it earned $15.4 million, or 64 cents per share, compared with profit of $8.8 million, or 37 cents per share, for the same quarter in 2007.

Sales jumped nearly 64 percent to $79.4 million, up from $48.4 million in the same period last year.

The earnings beat the expectations of analysts. According to a poll by Thomson Reuters, analysts expected a profit of 47 cents per share on sales of $65.8 million.

True Religion said sales in its U.S. wholesale segment were up nearly 54 percent to $46.3 million, while the international wholesale segment increased 3.2 percent to $11.2 million. The consumer-direct segment, which includes the company's retail and online stores surged to $21.5 million from $7.2 million in the same period last year.

True Religion said it opened six new stores in the quarter, bringing its store count to 36. At the end of the same quarter last year it had 13 stores. The company said as of Thursday it has opened three new stores since the end of the last quarter, meaning it has 39 stores. It expects to add two more stores by the end of the year, beating its previous target of 39 stores by the end of 2008.

The company increased its guidance for the fiscal year based on the strong sales results so far this year and other factors.

The earnings announcement came after the market closed Thursday. True Religion's shares fell 14 cents, less than 1 percent, to close at $15.85. In after-hours trading its shares jumped 8.5 percent, rising $1.35 to $17.20.

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