Comments on recent TRLG earnings report

Now that the 10-k has been published for True Religion and to respond to the comment that Karen left on my last post, here are my high level thoughts on True Religion (TRLG).

Here are the positive items about the recent TRLG earnings announcement:

- Continue to exhibit accelerating revenue growth in the retail industry

- Margin improvement due to direct channel new store expansion

- Strong Cash per share of $2.36 or 22% of current Market Cap (as of 03.20.2009)

Concerning Items:

- Total recession impact to premium priced product, guidance warned about softness but still shows growth due to expansion efforts.

- Lack of clarity on same store growth rates

- Diluting the True Religion brand image/equity by moving into areas outside of jeans.

These are just my thoughts and opinions of the firm and I will tread carefully if I decide to invest in the firm.  Realizing what state the economy and stock market is in, it will take me some time to make the decision to invest in the retail sector.

Author Disclosure: I am neither long nor short shares of True Religion (TRLG).

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