UPDATE 2-True Religion Q3 misses Street, FY forecast weak

* Q3 EPS $0.58 vs est $0.59

* Q3 rev $82.4 mln vs est $84.6 mln

* FY09 view misses Street * Shares down 11 pct after mkt (Adds conference call details, updates share movement)

Nov 3 (Reuters) - True Religion Apparel Inc's (TRLG.O) quarterly profit missed estimates for the first time in a year as expenses rose, and its full-year forecast fell short of expectations, sending shares down 11 percent in after market trade.

During the quarter, selling general and administrative expenses rose 27 percent to $30.6 million, driven by costs associated with opening and operating 30 new stores since September last year.

However, gross profit at the company, whose namesake jeans can retail for as high as $300 in specialty boutiques and major department stores, rose to 64.7 percent of sales, from 58.4 percent last year.

"Our gross margin benefited from the ongoing sales mix shift towards our higher margin consumer direct segment, along with the reduction in off-price sales," Chief Financial Officer Pete Collins said on a conference call with analysts.

A company executive said True Religion is seeing a demand for less embellished denims with a cleaner look, starting at around $172 to $220.

"We're expecting to drive incremental sales there in Q4," he said.

In the third quarter, True Religion -- which began selling jeans with a horseshoe on its back pocket in 2003 -- earned $14.1 million, or 58 cents a share during the quarter, while analysts were expecting a profit of 59 cents a share.

Revenue rose to 4 percent to $82.4 million, but still missed market expectations.

For the full year, True Religion said it now expects per-share earnings of $1.82 to $1.86, up from its prior view of $1.76 to $1.84.

The company also tweaked the lower end of its revenue view to a range of $295 million to $300 million. It had earlier expected revenue between $293 million and $300 million.

Analysts were expecting earnings of $1.88 a share, on revenue of $303.1 million, according to Thomson Reuters I/B/E/S.

Shares of the Vernon, California-based company were down 11 percent at $23.75 in after-market trade Tuesday. They closed at $26.56 on Nasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Ratul Ray Chaudhuri)