As Sales Slow, True Religion May Sell Itself

by Nate Wooley | October 10, 2012 2:51 pm

High-price clothes retailer True Religion (NASDAQ:TRLG[1]), faced with a 39% downturn in its stock value and disappointing profits, is considering selling out. The company has formed a special committee to consider potential moves, including a possible sale.

No decision on a sale has been made, reports The Wall Street Journal[2]. True Religion is also considering strategic partnerships and other actions. There’s no timeline for a decision.

Founded in 2002 and at one time a very high-flying brand, the retailer has seen significant competition in the high-end jeans market from retailers such as Gap (NYSE:GPS[3]) and others.

While booking more than $400 million in sales last year, True Religion has been disappointing with low-than-anticipated profits and sales forecasts. Costly attempts to expand overseas have also been a drag on the share price.

More clothes on the table:

Endnotes:
  1. TRLG: http://studio-5.financialcontent.com/investplace/quote?Symbol=TRLG
  2. reports The Wall Street Journal: http://online.wsj.com/article/BT-CO-20121010-704380.html
  3. GPS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GPS
  4. Ascena: A Clothing Retailer With Consistent Returns: http://investorplace.com/2012/06/a-clothing-retailer-with-consistent-returns/
  5. 8 Stores Dealing High-Priced Jeans: http://investorplace.com/2012/01/8-stores-dealing-high-priced-jeans/
  6. How Nasty Gal Built a $24 Million Business: http://investorplace.com/2012/04/how-nasty-gal-built-a-24-million-business/

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