Tumi Holdings (TUMI, Financial) a manufacturer of suitcases and bags for travel. Tumi's products are known for their black-on-black ballistic nylon. Tumi is available at department stores and specialty stores as well as over 120 Tumi stores and 200 shop in shops around the world. The company’s stocks are just over 7% in valuation for the last 12 months. Still, the company is committed to take its brand on the bright side by making various deals.
In Q1 FY15, Tumi Holdings stated earnings per share of $0.012, in line with the consensus estimate of $0.12. The company’s revenue for the quarter came in at $110.5 million, a miss by $7.5 million compared to analyst estimate of $118 million.
Net sales for the 1st quarter increased 1.7% to $110.5 million versus $108.6 million in the previous year’s same quarter.
Gross profit increased 3.5% to $65.3 million. Gross margin percentage raised by 100 basis points to 59.1% when compared to the first quarter of 2014.
For the quarter, total operating expenses were $55.7 million versus $49.7 million in the first quarter of last year.
TUMI to Travel in Style with MERCEDES AMG PETRONAS
Tumi Holdings, the prominent global travel lifestyle brand, announced its new sponsorship of The MERCEDES AMG PETRONAS Formula One Team.
Tumi Holdings, which offers its customers with attractive and world-class business and travel merchandises designed to uncomplicate and improve all aspects of their lives on the move, will turn out to be an authorized Supplier to MERCEDES AMG PETRONAS, providing the team entirely with TUMI premium Tegra-Lite and Alpha 2 merchandises among other exceptional TUMI travel collections. MERCEDES AMG PETRONAS and Tumi Holdings share a sturdy passion of being originated upon the same key values of design superiority, outstanding technological improvement and superior functionality.
Licensing Agreement with Incipio for Mobile Device Accessories
Incipio, the foremost designer and producer of award-winning mobile device accessories and technology, with TUMI declared a multi-territory, multi-year licensing agreement with principal global travel lifestyle brand, TUMI to create a range of finest mobile device accessories.
The strategic agreement will permit Incipio to bring about the design, manufacturing and global distribution of TUMI branded mobile device accessories. As part of the license agreement, Incipio will present the TUMI brand to new, premium retail and distribution channels over leveraging Incipio’s recognized and wide-ranging existence in the mobile solutions business.
The terms of the agreement will also let Incipio to enlarge the TUMI branded mobile device accessory group of protective smartphone and tablet cases to comprise an extensive power product assortment and audio product line. The inclusive range of high-end accessories will assimilate TUMI’s signature design aesthetic with sophisticated materials and smart functionality that characteristic to the TUMI Difference.
Conclusion
Although Tumi Holdings has not performed well over the past two years, there are many more rooms left for the company to occupy. However, it appears like the company has learned its lesson and is working hard to grasp its position in the market. Most recently, the company has detailed its sponsorship with MERCEDES AMG PATRONAS and Multi-Year Licensing Agreement with Incipio, which I believe will result in rising company’s sales, making it a worth buy.
