As Sales Slow, True Religion May Sell Itself

It has formed a committee to consider a possible deal

By Nate Wooley, InvestorPlace Writer

High-price clothes retailer True Religion (NASDAQ:TRLG), 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. 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) 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.

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