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What: Shares of Tumi Holdings (NYSE: TUMI ) were getting banged up today, falling as much as 12% after a disappointing first-quarter earnings report last night.
So what: The high-end luggage maker missed expectations on both top and bottom lines, turning in a per-share profit of $0.12 as sales 5.5% to $108.6 million. Analysts had expected EPS of $0.17 on revenue of $115.8 million. Addressing the underwhelming performance, CEO Jerome Griffith conceded that sales "got off to a slightly slower start than anticipated," but he noted strengths in the direct-to-consumer channel and said the new Alpha 2 product line was "incredibly well-received by consumers." Total comparable store sales including e-commerce improved 5.3%.
Now what: Also weighing on the stock was management's decision to lower guidance due to the weak first quarter. It now sees full-year sales increasing 12%-15%, down from its previous projection of 15$-17%, based on assumption of mid-single-digit comparable sales. On the bottom line, it now expects EPS of $0.88-$0.92, down from a previous range of $0.92-$0.96 as it transitions its e-commerce operations in-house. Analysts had expected a sales increase of 16% and EPS of $0.95, but Tumi shares mostly recovered over the course of trading day, down just 3% by late afternoon. While the adjusted outlook is disappointing, there doesn't seem to be anything in today's report indicating long-term weakness.
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