The 10-second takeaway
For the quarter ended March 31 (Q1), Tumi Holdings beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins expanded, net margins expanded.
Tumi Holdings reported revenue of $102.9 million. The five analysts polled by S&P Capital IQ anticipated revenue of $96.1 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $80.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.16. The six earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS of $0.16 for Q1 were 167% higher than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.4%, 30 basis points worse than the prior-year quarter. Operating margin was 17.1%, 50 basis points better than the prior-year quarter. Net margin was 10.2%, 660 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $114.9 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $491.8 million. The average EPS estimate is $0.90.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 14 members out of 26 rating the stock outperform, and 12 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Tumi Holdings a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tumi Holdings is outperform, with an average price target of $27.75.
Selling to fickle consumers is a tough business for Tumi Holdings or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.
- Add Tumi Holdings to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.