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What: Shares of Tumi Holdings, Inc. (NYSE:TUMI) were flying higher today, up as much as 23% after the company turned in a strong fourth-quarter earnings report.
So what: The high-end luggage maker beat estimates on both top and bottom lines as revenue increased 16.2% to $147.4 million, while earnings per share of $0.31 beat estimates by a penny. Same-store sales improved 2.4% in a tough retail environment, lapping a jump of 14.6% the year before. CEO Jerome Griffith said the company "advanced several of our strategic objectives and delivered solid financial performance in 2013," and said the company would introduce a new global e-commerce platform in 2014.
Now what: For 2014, Tumi expects sales to increase 15% to 17% and comparable-sales growth in the mid-single digits against the analysts' expectations of 16.6% revenue growth. The company also said bottom-line growth would take a hit due to its decision to transition e-commerce in-house, and now sees full-year EPS of $0.92 to $0.96, below estimates at $0.97. Retail expansion will also continue with Its store base growing by about 7% to 8% this year. Overall, the company seems to be making all the right moves, and should continue to put up solid growth numbers. I'd expect shares to steadily climb over the coming years.