NEW YORK (AP) — Shares of Tumi Holdings Inc. soared Tuesday after a high-end luggage builder reported a second-quarter distinction that handily kick Wall Street expectations and a Credit Suisse researcher upgraded a stock.
THE SPARK: The South Plainfield, N.J.-based association reported after a marketplace sealed Monday pronounced that it warranted $6.5 million, or 10 cents per share, for a 3 months finished Jun 24. That’s compared with $2.3 million, or 4 cents per share, in a year-ago period. Not including one-time items, a association pronounced it warranted 18 cents per share.
Analysts, on average, approaching a distinction of 13 cents per share, according to FactSet.
Tumi pronounced net sales rose by 22 percent, while direct-to-consumer sales during determined North American stores rose 8.4 percent during a quarter. That’s on tip of a 32 percent boost in a year-ago period. Sales during stores open during slightest a year are a pivotal metric given they frame out a sensitivity of newly non-stop and sealed locations.
THE BIG PICTURE: Tumi done a entrance as a public company in April. The company, founded in 1975, began by importing leather bags from South America though became best famous for a line of transport bags and business cases that it began creation in 1983. The association sells a products in company-owned stores and by other retailers in 65 countries.
THE ANALYSIS: In a note to investors, Credit Suisse researcher Christian Buss pronounced that Tumi’s clever tellurian code isn’t reflected in a distribution, and that a association has usually reached about 30 percent of a intensity penetration.
Following a postulated patron direct demonstrated in a second-quarter, Buss pronounced he has “increasing self-assurance that longer-term market share constraint and domain enlargement trends are personification out.” He pronounced he expects Tumi to continue to benefit marketplace share for a subsequent 5 years.
Buss lifted his rating on a batch to “Outperform” from “Neutral,” and increased his cost aim to “$25 from $23.
SHARE ACTION: In afternoon trading, Tumi shares combined $3.73, or 20.2 percent, to $22.25. The batch has traded between $14.44 and $28.70 given a initial open charity during $26.
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