Tumi Posts Q1 Profit, Shares Tumble

by Christopher Freeburn | May 16, 2012 3:01 pm

After the bell Tuesday, Tumi Holdings (NYSE:TUMI[1]) posted first-quarter earnings[2] of $2.9 million, compared to a loss of $100,000 for the same period last year. Quarterly sales jumped 21.4% to $80 million over $65.9 million in 2011. Adjusted EPS came in at 17 cents, up from 11 cents in 2011.

Investors were not impressed with the results, and TUMI shares dropped about 5% in Wednesday afternoon trading.

The travel product company’s gross margin was 56.7% for the quarter, up slightly from 56.3% last year.

Tumi added four new stores and closed two existing stores during the quarter, bringing the company’s total to 99 stores.

The company reported $30.5 million in available cash, down from $32.7 million at the end of last year. Inventories increased to $63.1 million, up from $60.5 million at the end of last year and higher than at the same time in 2011.

Company officials estimate full year sales of between $385 million and $390 million, based on same-store sales growth of mid-single digits. The company forecasts profits in a range of $30 million to $32 million for the year, with adjusted EPS between 47 and 50 cents.

  1. TUMI: http://studio-5.financialcontent.com/investplace/quote?Symbol=TUMI
  2. first-quarter earnings: http://www.tumi.com/category/index.jsp?categoryId=12776049

Source URL: https://investorplace.com/2012/05/tumi-posts-q1-profit-shares-tumble/
Short URL: http://invstplc.com/1nvSgBE