Shares True Religion Apparel Inc. in lost more than 3 percent Thursday after the company projected lower-than-expected earnings for this year. Sales, however, will be higher.

The Vernon-based company said that an expanded product line and growth in its consumer direct business will push sales to $52.4 million for the quarter. Analysts on average were expecting revenue of $47.3 million, according to Reuters Estimates.

True Religion added that sales from its consumer direct business rose 280 percent to $11.4 million in the quarter mainly due to openings of 11 stores in 2007. The company now has 15 branded stores.

The company forecast fiscal 2008 earnings of between $1.48 and $1.52 per share, on sales of about $210 million to $215 million. Analysts were expecting earnings of $1.56 per share, excluding items such as stock-based compensation charges, expenses and charges, on sales of $208 million.

The outlook included $3.5 million in expenses related to 20 retail store openings in 2008, the company said in a statement.

Shares in True Religion sank 3.1 percent to $17.02 in afternoon trading Thursday on the Nasdaq. Shares have lost 23 percent so far this year.