Tumi reports positive 2015, buys remaining stake in Japanese JV

By

Obi Anyanwu

Published
Feb 25, 2016

Tumi Holdings, Inc. announced Wednesday evening the financial results for its fourth quarter and full year of fiscal 2015 ended December 31, 2015.

 
In the fourth quarter, the company achieved net sales of $167.7 million, a 2.3% increase from $163.8 million that was recorded in last year’s fourth quarter. Net income also increased to $25.1 million from $23.7 million in the previous year, and gross profit increased 6.6% to $100.7 million from $94.5 million.
 
Total comparable sales for all Direct-to-Consumer channels decreased 4.6% with North America full-price comparable store sales decreasing 5.6% and International full-price comparable store sales decreasing 6.9%. The decline was offset by increases in North America outlet comparable store sales (6.0%), international e-commerce website sales (18.4%) and the International Direct-to-Consumer business as recorded in Euros, which increased 7% for full-price comparable store sales, 11.6% for outlet comparable store sales and 35.1% for international e-commerce website sales.

For the full year, Tumi reported a 3.9% increase in net sales to $547.7 million from $527.2 million in the previous year, a 6.8% increase in gross profit to $326.9 million from $306.0 million and an increase in net income to $63.0 million from $58.0 million.
 
Jerome Griffith, Chief Executive Officer and President, commented, “In fiscal 2015, we delivered revenue growth on a constant currency basis of 6.7%, adjusted EPS growth on a constant currency basis of 17.2%, drove significant gross margin expansion while protecting our brand in a promotional environment, and continued to push forward on our multiple growth initiatives. In addition, we announced plans to buy the remaining 50% stake of our Japanese Joint Venture, which we closed in early 2016.”
 
The global travel company in January announced that it purchased the remaining stake in its Japanese joint venture, and in November 2015 it announced that the Board has approved a $150 million share repurchase program, which the company made good on in the fourth quarter by repurchasing 485,400 shares for $8.5 million.
 
In 2016, the company expects net sales to increase 4% and 6% and for all Direct-to-Consumer channels to be flat.