On March 25, I recommended buying True Religion Apparel (TRLG) in the Forbes Growth Investor investment newsletter. The stock was selling for $11.60 at the time. On May 8, a few days after the company released first quarter results, I told subscribers to sell. The stock closed that day at $21.97.
When stocks are obviously not overestimate, it is no longer a scream purchase. The company reported year-over-year 19% increase in sales. It is fantastic in a recession, but it's also a relatively low growth TRLG posted in recent times.
In addition, the company's most paragraphs U.S. wholesale, saw a 11 percent decline. In addition, company profit decline 70 basis points and net income climbed only 9.8 per cent, well below increase your income.
However 765,000 dollar million dollars in cash and no debt, TRLG is a very healthy company. Even in a severe recession, the company had no problem convincing fanatically devoted customer purchase prices jeans. In the first quarter, an average price of $TRLG ordered a pair of jeans 262 dress in its full - priced shop. Perhaps more surprisingly, this 2.87 billion dollars for each pair of people jeans. More than 40 percent of the sales from people now category.
TRLG try to increase different brand stores and are pushing more profitable growth consumers directly and international parts. However, if it hits the high-end management, under the guidance of annual revenues will be only a modest 10%. EPS will fall down. I believe management is deliberately conservative prediction.
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