Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of clothier True Religion Apparel
So what: Revenues cruised past the $85.3 million analysts expected and hit $93.8 million in the quarter. But more importantly, that flowed to the bottom line -- where earnings per share rose to $0.36, $0.10 above estimates.
Now what: When you charge $300 for a pair of jeans, pressure on cost doesn’t have the same effect on the bottom line as it does for more value-oriented brands. And when sales rise 20% in one quarter, you have the recipe for a blowout quarter. High-end apparel appears to be in a healthy place right now and that puts True Religion in perfect position to take advantage, so I think shares will move higher from here.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.