True Religion: Who says $300 jeans aren't selling?

True Religion Apparel (NASDAQ: TRLG) is one of those companies that has a core cult following of investors, and it nearly defies logic. The company sells $200 and $300 blue jeans, among other apparel, has its own stores and also sells through key retailers like Urban Outfitters (NASDAQ: URBN), Neiman Marcus, Barneys, and other upscale retailers.

Shares are up big today, at $22.53 as of 10:20, and this more than 10% post-earnings move could get the stock within striking distance of its all-time highs from 2006. The company posted $0.21 net and $0.25 non-GAAP EPS on revenues of $35.7 million. Analysts were looking for $0.26 non-GAAP EPS and $35.7 million in revenues, according to First Call.

The company plans to add to its eight branded stores, increasing to fifteen stores by year end. The company is maintaining strong guidance for 2007, with $1.24 to $1.27 EPS and maintained about $167 million in revenue projections. First Call has estimates of $1.25 EPS and $166 million in revenues. This has been a stock that many short sellers have attacked, because after all, it sells $300 jeans.

This one has been shocking when you consider what the company does. It has a $500 million market cap. It has seen management infighting over a divorce that resulted in large share sales. Many on Wall Street think it is a prime short sale candidate. It hasn't been able to find a buyer. And it sells $300 jeans. Yet here it is, up over 10% and close to a year-high again.

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.