Tumi Holdings Inc., in its first quarterly earnings report since going public on April 19, posted a first-quarter profit and a 21.4 percent gain in sales.
This story first appeared in the May 16, 2012 issue of WWD. Subscribe Today.
For the three months ended March 25, the luxury accessories firm reported net income of $2.9 million, or 6 cents a diluted share, against a net loss of $83,000, or 0 cents, in the year-ago quarter.
Net sales rose to $80 million from $65.9 million. The company said North American direct-to-consumer sales rose 31.6 percent to $34.4 million from $26.1 million, while comparable-store sales gained 16.9 percent on top of a 22.7 percent comp increase in the first quarter of 2011. The company includes e-commerce sales in its comp calculation. International direct-to-consumer sales fell 4.6 percent to $3.2 million from $3.4 million, with comps decreasing 1.6 percent compared with a 21.4 percent increase in the same quarter a year ago.
The company said operating income rose 41.5 percent to $13.3 million, or 16.6 percent of net sales, compared with $9.4 million, or 14.2 percent, last year.
Jerome Griffith, president and chief executive officer, said, “The strong start to 2012 builds on the positive momentum we have seen over the past two years as we execute on our strategic growth initiatives. Our recent results have been driven by our ability to successfully leverage Tumi’s iconic position in travel and business categories into the broader global premium lifestyle market.”
Griffith added that with “$330 million in annual sales in 2011 and 99 company-owned stores worldwide, we believe we have only just begun to harness the full potential of the brand.”
The company said it expects diluted earnings per share for fiscal year 2012 in the range of 47 cents to 50 cents. Net income is forecasted at between $30 million and $32 million, with net sales between $385 million and $390 million.