Shares of True Religion Apparel Inc. fell more than 21 percent on Wednesday after the designer denim maker and retailer reported a mixed second quarter and lowered its full-year guidance.
Net income rose 4 percent to $9.8 million (39 cents a share), which was 4 cents a share higher than analysts forecast. But 7 percent revenue growth to $105 million fell short of Wall Street expectations of $107 million.
The Vernon company saw slower sales of spring and summer women’s merchandise, and now expects full-year profit of $1.80 to $1.86 a share, down from its earlier forecast of $1.88 to $1.95. That led analyst Dorothy Lakner of Claris & Co. to cut her recommendation on shares from “buy” to “above average”