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Tumi Holdings Announces Financial Results For The Second Quarter 2013

Stocks in this article: TUMI

Tumi Holdings, Inc. (NYSE: TUMI), the leading global brand of premium travel, business and lifestyle products and accessories, today announced its financial results for the second quarter ended June 30, 2013.

For the second quarter of 2013:

  • Net sales increased 12.9% to $108.2 million from $95.8 million in the second quarter ended June 24, 2012.
  • Total comparable store sales for all Direct-to-Consumer channels, including company-owned websites, increased 4.6% compared to an increase of 8.0% in the second quarter of 2012.
  • Direct-to-Consumer North America comparable store sales (including e-commerce sales) increased 3.6%, compared to an increase of 8.4% in the second quarter of 2012. Excluding e-commerce sales, Direct-to-Consumer North America comparable store sales increased 1.7%, compared to an increase of 7.2% in the second quarter of 2012.
  • Direct-to-Consumer International comparable store sales (including e-commerce sales) increased 13.3% in local currency, compared to an increase of 16.2% in the second quarter of 2012. Excluding e-commerce sales, Direct-to-Consumer International comparable store sales increased 13.2% in local currency, compared to an increase of 12.5% in the second quarter of 2012. In U.S. dollars, Direct-to-Consumer International comparable store sales (including e-commerce sales) increased 14.7%, compared to an increase of 4.5% in the second quarter of 2012. Excluding e-commerce sales, Direct-to-Consumer International comparable stores sales increased 14.6% in U.S. dollars, compared to an increase of 1.3% in the second quarter of 2012.
  • Gross profit increased 13.9% to $62.3 million from $54.7 million in the second quarter of 2012. Gross margin was 57.6% compared to 57.1% in the second quarter of 2012.
  • Operating income increased 48.4% to $17.9 million, or 16.5% of sales, from $12.0 million in the second quarter of 2012. During the second quarter of 2013, Tumi incurred a $1.5 million ($0.9 million after tax) charge in connection with the early termination of an agreement with its web services provider. Tumi intends to implement an internal web-service function next year. Excluding this one-time charge, operating income for the second quarter of 2013 was $19.4 million, or 17.9% of net sales. During the second quarter of 2012, Tumi paid a $5.5 million ($3.1 million after tax) one-time special bonus to its Chief Executive Officer, President and Director in connection with the successful completion of its IPO. Excluding this one-time special bonus expense, operating income for the second quarter of 2012 was $17.5 million, or 18.3% of net sales.
  • Net income was $11.2 million, or $0.16 per diluted share, based on 67.9 million diluted weighted average common shares outstanding, compared to $6.5 million, or $0.10 per diluted share, based on 63.8 million diluted weighted average common shares outstanding in the second quarter of 2012.
  • Excluding the aforementioned early termination charge, net income was $12.1 million, or $0.18 per diluted share. In the second quarter of 2012, net income before preferred dividend expense (non-cash), a non-GAAP financial measure, which excluded a $1.6 million non-cash dividend expense on mandatorily redeemable preferred stock and preferred equity interests, was $8.1 million, or $0.13 per diluted share. Excluding the aforementioned one-time special bonus expense of $3.1 million after tax, net income before preferred dividend expense (non-cash) and one-time costs was $11.2 million or $0.18 per diluted share in the second quarter of 2012.
  • During the second quarter of 2013, Tumi opened 2 new stores.
  • At June 30, 2013, Tumi operated 119 company-owned stores.

Jerome Griffith, Chief Executive Officer, President and Director, commented, “Our global expansion continued to progress nicely in the second quarter, and we are proud of our year-to-date performance at the halfway point in 2013. While our domestic store traffic slowed modestly in the second quarter, our new stores, e-commerce business, wholesale volume, and new product initiatives in the women’s and accessories categories all continued to show strong momentum in the quarter. In our international business, Europe continued to perform very well as did the Middle East and most of Asia. Looking out to the second half of the year, we have a strong pipeline of store openings in favorable markets. We continue to make strides in capitalizing on Tumi’s global status as an iconic premium lifestyle brand, and we remain focused on, and confident in, our long-term growth opportunities in 2013 and beyond.”

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