Tumi Holdings Q1 gross profit lifts 8.7% to $63.1mn

10 May '14

5 min read

Tumi Holdings, Inc., the leading global brand of premium travel, business and lifestyle products and accessories, announced its financial results for the first quarter ended March 30, 2014.

For the first quarter of 2014:

Net sales increased 5.5% to $108.6 million from $102.9 million in the first quarter ended March 31, 2013, impacted by a reduction of wholesale orders in the Asia Pacific region, as well as weaker wholesale sales in North America.

Total comparable store sales for all Direct-to-Consumer channels, including company-owned websites, increased 5.3%, compared to an increase of 16.4% in the first quarter of 2013.

Direct-to-Consumer North America comparable store sales (including e-commerce sales) increased 4.0%. Excluding e-commerce sales, Direct-to-Consumer North America comparable store sales increased 2.6%.

Direct-to-Consumer International comparable store sales (including e-commerce sales) increased 19.7% in U.S. dollars, or 15.3% in Euros. Excluding e-commerce sales, Direct-to-Consumer International comparable stores sales increased 12.5% in U.S. dollars, or 8.4% in Euros.

Gross profit increased 8.7% to $63.1 million from $58.0 million in the first quarter of 2013. Gross margin was 58.1% compared to 56.4% in the first quarter of 2013.

Operating income decreased 24.0% to $13.4 million from $17.6 million in the first quarter of 2013 due to planned investments. Operating income margin was 12.3% compared to 17.1% in the first quarter of 2013.

In the first quarter of 2013, the company incurred approximately $0.5 million in operating expenses in conjunction with the secondary common stock offering completed in April 2013. Excluding this one-time expense, operating income would have been $18.1 million, and operating income margin would have been 17.6% in the first quarter of 2013.

Net income was $8.2 million, or $0.12 per diluted share, based on 67.9 million diluted weighted average common shares outstanding, compared to $10.5 million, or $0.16 per diluted share, based on 67.9 million diluted weighted average common shares outstanding in the first quarter of 2013.

Excluding the aforementioned one-time expense incurred in conjunction with the secondary common stock offering completed in April 2013, net income would have been $10.8 million, or $0.16 per diluted share, in the first quarter of 2013.

During the first quarter of 2014, Tumi opened one new store, relocated two stores, renovated two stores, and closed one store. At March 30, 2014, Tumi operated 130 company-owned stores.

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