The denim brand from U.S – True Religion – beat the impact of cotton prices , low demand and other negative factors to achieve a cool 10.2% growth in the third quarter of 2011. The company is not depending on the domestic US market for its growth. During the quarter, True Religion said it granted the Envols International Trading Co exclusive distributorship in China and non-exclusive distributorship in Hong Kong through an agreement that extends to December 2016.
Envols, known for expanding the wholesale and retail
presence of the Giorgio Armani brand in China, will fund and
operate True Religion Brand Jeans retail stores, shop-in-shops
and other premium retail concepts in the region.
It is not surprising to see True Religion targeting the Chinese market as China, India and Brazil are now being targeted by most retailers to achieve growth.
True Religion retails its denim for as much as $300 and it was in a better position to reduce the impact of risen cotton prices. However, it also performed well in international markets . Here is a breakup of its third quarter sales :
| Sales in third quarter 2011 |
$108.4 million (against $92.8 million in 2010 |
| Sales in US (33.5% growth) | $61.8 million |
| International Sales | $23.5 million |
Note: True Religion Apparel, Inc. designs, manufactures, markets, distributes, and sells through its wholly-owned subsidiary Guru Denim, Inc under the True Religion Brand Jeans trademarks. The Company sells its jeans in the United States and abroad to upscale retailers and boutiques. This includes Nordstrom, Bloomingdales, Bergdorf Goodman, Urban Outfitters and other fashion boutiques.
