Consistently strong results at Tumi Holdings Inc.’s 164 retail stores along with robust wholesale demand for its travel and related products and accessories drove up sales and profits in the second quarter.
In an after-market statement, the company said net income rose 37 percent to $16.7 million, or 25 cents a share, from $12.2 million, or 18 cents, in the same period last year on a sales gain of 11.2 percent to $138.5 million from $124.6 million. The gross margin rate expanded more than 200 basis points to 59.92 percent.
As a result, the company said it expects net sales to increase between 6 percent and 9 percent for the fiscal year period with earnings ranging from 90 to 95 cents a share. “This assumes a foreign currency impact on net sales of approximately $13 million, and on diluted earnings per share of approximately [5 cents], assuming prevailing exchange rates,” the company said in the quarterly report. “In the event that foreign currency exchange rates fluctuate from prevailing levels, these estimates of currency impacts could be favorably or unfavorably impacted.”
Jerome Griffith, chief executive officer and president, said the company’s performance was “led by strength in our retail business worldwide, as well as the continued momentum in our international wholesale segment. We remain focused on continuing to execute our growth initiatives, including introducing innovative new products and growing our footprint worldwide, driving brand awareness and attracting new consumers to the Tumi brand globally.”
For the current fiscal year, Tumi expects to open between 20 and 22 stores with capital expenditures ranging between $35 million and $40 million.