UPDATE 2-True Religion Q4 tops view; to focus on direct sales

* Q4 EPS $0.59 vs est $0.55 * Rev up 27 pct, beats estimates * Sees 2010 EPS $2.00-$2.10 vs est $2.13

* Sees 2010 sales $360 mln, above est

* Shares up 5 pct (Recasts, adds conference call details, share movement)

Feb 24 (Reuters) - True Religion Apparel Inc (TRLG.O) reported quarterly results that comfortably beat market estimates and expects to open its first full-price stores abroad, sending its shares up 5 percent in after-hours trade.

However, the company, which makes denimwear, forecast a 2010 profit below expectations as it ramps up spending to expand in international markets and on branded retail stores.

True Religion, which sees a 20 percent growth in international sales, plans to open its a retail store each in Toronto, London and Tokyo, as well as 27 branded retail stores in the United States this year.

The increased spending is expected to result in flat earnings for the first three quarters, but will boost its fourth-quarter profit, a company executive said on a conference call.

"These will solidify our profit growth in 2010, but they should be beneficial to our top and bottom line beginning in 2011," he added.

The company is also reducing its sales to the off-price channel by $10 million in the U.S. wholesale segment, as it focuses on direct sales.

True Religion, whose namesake jeans cost as much as $300 in specialty boutiques and major department stores, projected earnings in the range of $2.00 to $2.10 on sales of about $360 million for the year.

Analysts were expecting a profit of $2.13 a share on revenue of $345.3 million, according to Thomson Reuters I/B/E/S.

For the fourth quarter, net income rose to $14.6 million, or 59 cents a share, from $12.7 million, or 53 cents a share, a year ago.

Revenue rose 27 percent to $92.8 million. Net sales for the consumer direct segment nearly doubled to $45.1 million. International sales grew about 24 percent to $14.6 million.

Analysts on average were expecting the company to earn 55 cents a share on revenue of $84.5 million.

Shares of the Vernon, California-based company rose 5 percent to $21.70 in extended trade. They closed at $20.78 Wednesday on Nasdaq. (Reporting by Viraj Nair in Bangalore; Editing by Anil D'Silva)