Do jeans earnings make their butt look big?

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Premium denim is refusing to fade, at least judging from True Religion’s latest earnings.

For the three months ended June 30, True Religion Apparel posted an 18% increase in profit and boosted its earnings outlook for fiscal 2009 thanks to a big kick in the pants from its branded retail stores and website.

Designer jeans have had a leg up on other consumer goods during the recession, analysts say. Sales of premium brand jeans grew by 17% during 2008 and managed a 2.3% increase in the three months ended in February, making pricey denim one of a few ‘pockets of growth in an otherwise fizzling fashion market,’ market research firm NPD Group said recently.

True Religion, based in less-than-fashionable Vernon, said net income rose to $11 million, or 45 cents a share, from $9.3 million, 39 cents, in the second quarter of last year. Analysts surveyed by Thomson Reuters had expected earnings of 39 cents a share on average.

Sales swelled 12% to $72.1 million even though the company’s wholesale operation, which peddles clothing to other retailers, saw a 20% decline in revenue. The big increase came from True Religion’s own stores and website, which sold 60% more in the second quarter compared with the year-earlier period.

During the quarter, True Religion opened 10 stores, bring its total to 59 on June 30 compared with 30 a year earlier. True Religion opened another store in July.

True Religion said it expects to earn $1.76 to $1.84 a share for the full year. That’s an improvement over the earlier outlook of $1.73 to $1.81 a share.

“In the second quarter, we continued to build brand awareness through the expansion of our consumer direct platform, execute alongside our retail partners and expand our distribution worldwide,’ Chief Executive Jeffrey Lubell said in a statement. ‘This multifaceted approach to growth enabled us to mitigate the broader economic challenges.’

True Religion shares were up $1.56 to $24.06 at 11 a.m. Pacific time.

-- Nancy Rivera Brooks