My boss at WeSeed.com has a favorite stock - True Religion Apparel Inc. (NASDAQ: TRLG), designer of jeans in the $200 - $300 range. On one hand, who has three hundred clams to spend on denim these days? On the other, people who always had such money for frivolities may have not been hurt as much as those always wearing discount threads. Plus, the TRLG store here in Chicago is always crowded, and people are buying. Well, the fashion-conscience company reported fourth-quarter earnings last night, and while people may still be buying, the continuation of this trend is suspect. In its last reporting period, TRLG earned $12.7 million, or 53 cents per share, easily exceeding analysts' estimates of 46 cents per share. This topped year-ago results of 37 cents per share by 43%. Net sales more than doubled, surging to $24.4 million.
And yet ... True Religion's fiscal 2009 earnings prediction was in the range of $1.73 to $1.81 per share, with revenue projected at $290 million to $297 million. Analysts were expecting per-share results of $1.82 this year and $294.1 million in sales. The company also plans to open 25 branded new stores during the fiscal year. Lower-than-expected revenue and increased locations? Maybe I need to have a chat with my boss.
Well, the stock is souring in midday trading, down about 15%. Since early November, TRLG shares have shuffled back and forth in a range between 10 and 15. Currently, the stock is toward the lower rail of this range, at $11.48.
Well, the stock is souring in midday trading, down about 15%. Since early November, TRLG shares have shuffled back and forth in a range between 10 and 15. Currently, the stock is toward the lower rail of this range, at $11.48.
Beth Gaston Moon works for WeSeed.com, "The stock market for the rest of us." The above comments are not intended as trading or investment advice.
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Reader Comments (Page 1 of 1)
2-26-2009 @ 5:37PM
Mac McDaries said...
And my WeSeed practice portfolio crashed through the floor on this news today for True Religion...well, I still love wearing them anyway!