Accessories brand Tumi Holdings Inc. posted a decline in first-quarter profits.
For the three months ended March 29, the company said net income fell 21.8 percent to $6.4 million, or 9 cents a diluted share, compared with net income of $8.2 million, or 12 cents, a year ago. On an adjusted basis, diluted earnings per share met Wall Street’s consensus estimate of 12 cents. Net sales for the period rose 1.7 percent to $110.5 million from $108.6 million.
The company said comparable-store sales for all direct-to-consumer channels fell 4.6 percent, compared with a 5.3 percent gain in the year-ago quarter. Gross margin rose 3.5 percent to $65.3 million from $63.1 million a year ago.
Jerome Griffith, president and chief executive officer, said, “We met our bottom line objectives in the first quarter with strong gross margin improvement and disciplined cost controls.”
He added that the company maintained its focus on the “continued execution of our growth initiatives, including introducing new and innovative products, expanding our footprint worldwide and strengthening our e-commerce capabilities.”
The company said it is taking steps to decrease its participation in promotional events to protect brand equity over the long term. It forecasted diluted EPS for fiscal 2015 to be between 90 cents and 95 cents on a net sales gain of 6 percent to 9 percent. The company expects to open between 18 to 22 new stores in 2015.