The firm said it lowered its rating on the company, which offers a variety of travel and business products and accessories for in a number of categories, based on a valuation call.
Credit Suisse lowered its full year 2015 earnings estimates on Tumi to 99 cents per share on revenue of $597 million, from $1.03 per share on revenue of $601 million.
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For fiscal 2016 Credit Suisse reduced its earnings estimate on Tumi to $1.14 from $1.18.
Shares of Tumi Holdings closed at $22.65 on Tuesday afternoon.
Separately, TheStreet Ratings team rates TUMI HOLDINGS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TUMI HOLDINGS INC (TUMI) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TUMI's revenue growth has slightly outpaced the industry average of 17.1%. Since the same quarter one year prior, revenues rose by 19.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- TUMI HOLDINGS INC has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, TUMI HOLDINGS INC increased its bottom line by earning $0.81 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.81).
- The gross profit margin for TUMI HOLDINGS INC is rather high; currently it is at 62.06%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.68% is above that of the industry average.
- Net operating cash flow has increased to $12.07 million or 34.87% when compared to the same quarter last year. Despite an increase in cash flow, TUMI HOLDINGS INC's cash flow growth rate is still lower than the industry average growth rate of 68.70%.
- You can view the full analysis from the report here: TUMI Ratings Report