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True Religion Apparel Inc. (TRLG)
Q4 2012 Results Earnings Call
February 6, 2013 4:30 PM ET
Jean Fontana - ICR, IR
Jeff Lubell - Chairman, CEO and Chief Merchant,
Lynne Koplin - President
Pete Collins - Chief Financial Officer
Scott Krasik - BB&T Capital
Jeff Van Sinderen - B. Riley
Edward Yruma - KeyBanc Capital Markets
Ronald Bookbinder - The Benchmark Company
Danielle McCoy - Brean Capital
Janine Stichter - Telsey Advisory Group
Previous Statements by TRLG
» True Religion Apparel's CEO Discusses Q3 2012 Results - Earnings Call Transcript
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» True Religion Apparel CEO Discusses Q3 2010 Results - Earnings Call Transcript
» True Religion Apparel, Inc Q2 2010 Earnings Call Transcript
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jean Fontana of ICR. Thank you, Ms. Fontana. You may begin.
Thank you. Good afternoon, everyone. And thank you for joining us today to discuss True Religion Apparel’s fourth quarter and full year 2012 financial results. By now, everyone should have access to the earnings release. If you have not received the release, it is available on the Investor Relations portion of True Religion’s website at www.truereligionbrandjeans.com by clicking on the Investor Relations tab.
We’ve also posted on the site the detailed management commentary on our segment results for the fourth quarter and full year 2012. This call is being webcast and a replay will be available and archived on the company’s website.
Please note that all the information discussed on the call today is covered under the Safe Harbor provision of the Private Securities Litigation Reform Act. We caution listeners that during this call, True Religion management will be providing financial guidance and making other forward-looking statements regarding future financial results and business opportunities.
We encourage you to read the 2011 10-K, the upcoming 2012 10-K and other reports that we file periodically with the SEC. These documents contain a discussion of the risks facing our business, including factors that could cause these forward-looking statements to not come true. The company does not currently intend to update these forward-looking statements except as required by law.
With that, it is my pleasure to turn the call over to True Religion Apparel’s Chairman, Chief Executive Officer and Chief Merchant, Jeff Lubell.
Thank you, Jean, and good afternoon, everybody. Thank you for joining us today as we discuss our financial results for the fourth quarter and full year 2012. Joining me on the call today are Lynne Koplin, our President; and Pete Collins, our Chief Financial Officer.
Overall, we are pleased to have ended the year on a positive note. During 2012 we continue to grow our men’s business, took steps to evolve our women’s business, expanded our U.S. retail store base and grew our international business.
From a financial perspective in 2012, total sales grew 11% to $467 million, ahead of our original guidance for $450 million to $460 million. We generated adjusted diluted EPS of $1.84.
During the fourth quarter we generated positive same-store sales in our U.S. Consumer Direct segment with an increase in our full-price stores, comp and strong growth in our E-commerce business.
In our full-price stores we are more diligent in managing our inventory to keep stores looking fresh and we also enhance our focus on conversion. In addition, we increased the amount of design for outlet merchandise available for our outlet stores, which we believe will enable us to capture improve profitability in this channel.
Finally in our International business we saw sales growth driven by EMEA and the Americas. I’m also very pleased that we successfully made progress during the year towards each of our key goals.
Our first goal was to continue momentum in our men’s business and during 2012 our men’s business continued to generate strong growth both in our retail stores and in the Wholesale channel.
Secondly, we plan to work to evolve our women’s merchandise assortment. We have begun to make changes to our infrastructure and to enhance our sourcing capabilities, while bringing in additional talent to help us strengthen our women’s offering.
Our plan was to grow our U.S. retail store base by 13 stores, where we opened 14 new stores during 2012. Finally, we wanted to build upon our international growth efforts. During the year we opened 14 new international stores. We also moved forward with operational initiatives in our International business that we believe will enable us to capitalize on the significant growth opportunity in our currents market and to expand into new markets.
Looking ahead to 2013, we will continue to build on these initiatives to drive further growth. Let me provide some more detail on how we will get there.
In the men’s business we will continue the strong momentum that has been building by focusing on product innovation to create new styles that reflect changing trends. We will also continue to expand our non-denim offering to attract new customers and broaden appeal. On the women side, we are focused on reestablishing True Religion as a go to brand for women.
As such we will develop an updated, well edited core basic offering while also consistently featuring fashion forward concepts. We will build an enhance sportswear offering that presents both fashion and quality in order to heightened our brand appeal.
In both the men’s and women’s businesses, we will work increase coordination between the merchandising and planning functions across channels, improve speed to markets with enhanced sourcing network and strive for better execution from the design phase to delivery.