Tumi Profit Falls, Cuts Full Year Forecast, Stock Down - Update

(RTTNews) - Specialty retailer Tumi Holdings, Inc. (TUMI) Thursday said first-quarter profit declined from the prior year, as sales got off to a slightly slower start than expected. Citing the quarterly results, the company lowered its outlook for the year. The stock fell close to 7 percent in extended trading.

Net income fell to $8.2 million or $0.12 per share from $10.5 million or $0.16 per share in the same period last year.

On average, nine analysts polled by Thomson Reuters expected the company to earn $0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales improved 5.5 percent to $108.60 million from $102.93 million last year. Analysts expected revenues of $115.80 million.

The retailer noted that sales were hurt 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 percent, compared to an increase of 16.4 percent in the prior year.

Jerome Griffith, CEO, said, "While overall 2014 sales got off to a slightly slower start than we anticipated, it certainly is not a clear demonstration of the health of the business."

Operating income decreased 24 percent due to planned investments. Total operating expenses increased to $49.70 million from $40.4 million, amid higher expenses for Retail operations, Selling as well as General and administrative expenses.

Looking ahead to fiscal 2014, the company now expects earnings to be in the range of $0.88 per share to $0.92 per share, down from its prior outlook of $0.92 to $0.96 per share.

Net sales are now expected to increase between 12 and 15 percent. Previously the projection was for net sales growth of 15 to 17 percent.

Analysts currently expect full-year earnings of $0.95 per share and revenue growth of 16 percent.

TUMI closed down 0.5 percent at $19.98 and declined 6.9 percent in extended trading.