True Religion 4Q profit more than doubles on sales

VERNON, Calif.—Pricey jeans maker True Religion Apparel Inc. said Tuesday its fourth-quarter profit more than doubled, due to a big boost in sales in both its wholesale and retail businesses.

For the quarter ended Dec. 31, net income jumped to $8.9 million, or 37 cents per share, from $4.1 million, or 18 cents per share in the prior-year quarter.

Excluding an income tax charge and separation costs, the company said it earned 40 cents per share.

Analysts polled by Thomson Financial, on average, expected profit of 39 cents per share.

Sales climbed 74 percent to $52.7 million, from $30.4 million in the fourth quarter of 2006. Analysts predicted revenue of $52.3 million.

True Religion said sales in its U.S. wholesale division grew 62 percent, while sales in its consumer direct segment, which includes its retail stores and e-commerce site, more than tripled. The company has been expanding its consumer direct business and opened two new stores in the fourth quarter.

The company's international wholesale business sales rose 21 percent.

For the year, profit rose 28 percent to $27.9 million, or $1.16 per share, from $21.7 million, or 92 cents per share in 2006.

Revenue jumped 23 percent to $173.3 million, from $140.5 million in 2006.

The company reported its fourth-quarter results later than expected because it had to restate its 2006 financial statements because of errors in several areas, including the calculations for its income tax and stock-based compensation expenses.

True Religion plans to report its first-quarter earnings on May 8.

Shares rose $1.12, or 6.4 percent, to $18.75 in electronic after-hours trading. During regular trading, the stock closed unchanged at $17.63.