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 third quarter ended September 29, 2013.
For the third quarter of 2013:
- Net sales increased 13.6% to $108.9 million from $95.9 million in the third quarter ended September 23, 2012.
- Total comparable store sales for all Direct-to-Consumer channels, including company-owned websites, increased 8.5% compared to an increase of 10.9% in the third quarter of 2012.
- Direct-to-Consumer North America comparable store sales increased 7.4%. Excluding e-commerce sales, Direct-to-Consumer North America comparable store sales increased 5.0%.
- Direct-to-Consumer International comparable store sales increased 17.1% in U.S. dollars, or 11.1% in Euros. Excluding e-commerce sales, Direct-to-Consumer International comparable stores sales increased 19.4% in U.S. dollars, or 13.2% in Euros.
- Gross profit increased 16.0% to $64.0 million from $55.2 million in the third quarter of 2012. Gross margin was 58.8% compared to 57.6% in the third quarter of 2012.
- Operating income increased 7.4% to $18.5 million, or 17.0% of sales, from $17.3 million, or 18.0% of sales, in the third quarter of 2012. Higher operating expenses in the third quarter of 2013 reflect increased investment in marketing and the incremental investment required to transition Tumi’s web stores to what the Company believes to be a more effective and efficient model. As previously announced, Tumi intends to implement an internal web-service function next year. In addition, Tumi continued to invest in human resources in design, IT, finance, and logistics in the third quarter of 2013 compared to the third quarter of 2012.
- Net income was $12.1 million, or $0.18 per diluted share, based on 67.9 million diluted weighted average common shares outstanding, compared to $10.5 million, or $0.15 per diluted share, based on 67.9 million diluted weighted average common shares outstanding in the third quarter of 2012.
- During the third quarter of 2013, Tumi opened 5 new stores.
- At September 29, 2013, Tumi operated 124 company-owned stores.
Jerome Griffith, Chief Executive Officer, President and Director, commented, “We feel very good about the third quarter as there were many examples of the team’s ability to execute our strategic plan, which included opening new Tumi retail locations, and rolling out a new global marketing campaign. Our focus on raising brand awareness is beginning to have an impact, and we feel good about how we are positioned for the holiday season. Looking ahead, we will continue to invest in the Company’s significant long-term potential by increasing our marketing spend, transitioning e-commerce to being run in-house, and developing our global distribution platform.”
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