To Our Stockholders,

From the early days of True Religion Brand Jeans, our strategy has been anchored to three objectives:
continuously bring innovative, trendsetting jeans and related sportswear to fashion conscious consumers;
balance our sales between retail and wholesale channels; and connect with consumers around the
world. Since the second half of 2008, the retail environment for premium jeans experienced unusual
changes, with retailers attempting to anticipate the tastes of consumers who were faced with continuous
unsettling news. Through a tumultuous 2009, our Company maintained its strategy and delivered
double digit sales and operating income increases. In addition to achieving the highest annual net sales
and net income in our Companys history, we also strengthened our balance sheet with a $48 million
increase to our cash and cash equivalents balance. Those results support our strategy and foreshadow
the opportunity for True Religion Brand Jeans.
We made significant strides in our consumer direct segment during 2009, with 71 percent growth in net
sales and 61 percent growth in operating income. We opened 28 branded stores in 2009, ending the
year with 70 stores. Our consumer direct segment, which became our largest segment in 2009, is key to
maintaining control over our brand equity and provides incremental operating margin to our business.
Our U.S. wholesale segment took the largest hit from the downturn in the U.S. economy as our
wholesale customers shifted their on-hand assortment to lower-priced styles. U.S. wholesale sales
declined 20 percent in 2009. The wholesale customers provide significant retail presence to our brand,
and we have restructured our sales team and are taking steps to partner with retailers more closely to
reverse this trend.
We view international expansion as one of the most attractive growth opportunities given the expanding
worldwide demand for the True Religion Brand merchandise. In 2009 our international net sales
increased 36 percent over 2008, primarily in Europe and Asia, and comprised 18 percent of our total
sales in 2009. We will continue to invest in key international markets as we expand the presence of our
merchandise throughout the world.
Just as we hired experienced people to direct the growth of our business in the past, we added two
leaders to our senior management team in the past few months. Lynne Koplin joined us in January
2010 as our Chief Operating Officer, and John Gearing joined us in October 2009 as our Asia / Pacific
General Manager. I am thrilled by the breadth and depth of our team and our ability to continue to
add experienced, dedicated leaders who share my passion for our brand.
Moving into 2010, we will continue to follow our strategy and build on our 2009 results.
We will be opening 27 branded retail stores in the USA, and we intend to continue this retail
growth in 2011 as well.
We will open our first full-price, international branded stores in Tokyo, London and Toronto. I
expect that by presenting the full range of our innovative, trendsetting merchandise to the
fashion-conscious consumers in these branded retail stores, we will validate the market
opportunities in Japan, the UK and Canada, just as we did when I opened our first branded
store in Manhattan Beach, California in 2005.
Our U.S. wholesale business is moving toward a more collaborative process with the Majors,
which we are confident will yield improved trends in this segment. We also expect our boutique
business to benefit significantly from our direct sales force, with salespeople dedicated
exclusively to serving our boutique customers.
On behalf of our Board of Directors and executive team, I would like to thank our stockholders,
employees and customers for their continuing confidence, loyalty and support of True Religion Brand
Jeans.

29AUG200815101735
Jeffrey Lubell
Chairman, Chief Executive Officer and Chief Merchant