Tumi Holdings (TUMI) Misses Q1 EPS by 5c, Sales Miss; Guides Lower

Tumi Holdings (NYSE: TUMI) reported Q1 EPS of $0.12, $0.05 worse than the analyst estimate of $0.17. Revenue for the quarter came in at $102.9 million versus the consensus estimate of $115.8 million.

Tumi Holdings sees FY2014 EPS of $0.88-$0.92, versus the consensus of $0.95.

The Company is revising its guidance for 2014 to reflect the results in the first quarter, and now expects net sales to increase between 12% and 15% for the full year. This estimate assumes total comparable store sales growth in the mid-single digits. As previously discussed, 2014 will be a year of higher than normal investment and expenses driven primarily by transitioning e-commerce in-house. It is estimated that the Company will spend approximately $2.5 million to $3.5 million for operator fees to the old platform provider while also incurring additional expenses of approximately $1.0 million to $2.0 million on migrating to the new platform during the first half of 2014. Additionally, the Company expects to continue to invest in its logistics capabilities, design resources, product management, IT infrastructure and human resource base. Therefore, diluted EPS for 2014 is now expected to be between $0.88 to $0.92. This estimate assumes diluted weighted average common shares outstanding of approximately 68.1 million, and a revised weighted GAAP tax rate of 37.4%.

The Company expects to open 18 to 22 new stores with the store opening cadence to be heavily weighted toward the back end of the year. In the second quarter, we plan to open 6 stores, and plan to renovate / relocate a total of 3 stores. Capital expenditures for fiscal 2014 are expected to be in the range of $40.0 million to $45.0 million.

For earnings history and earnings-related data on Tumi Holdings (TUMI) click here.

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