American denim brand True Religion Apparel has lowered its profit expectations for this fiscal year. Management is expecting a USD450 million turnover, instead of the USD460 million previously predicted.
The company noted that sales in Canada and Korea suffered the most, along with womenswear, which, during the second quarter experienced enough slowdown to force the premium denim brand to offer discounts with a semi-annual sale.
True Religion ended the second quarter of the year with a $104.9 million turnover, up by 6.8% compared to $98.3 million in the first three months of 2011, which were nonetheless below the expectations of Wall Street analysts. Net profits increased 3.6% to $9.8 million.
“We’re still a very prestigious brand. “I call it a hiccup, but Wall Street likes to do what they do best, based on performance and our job here is to perform every quarter”, said founder and CEO Jeffrey Lubell in a conference call with analysts. True Religion sells its jeans in a price range between $170 and $360.