TUMI Holdings Inc., the specialty retailer that is known for its high quality luggage, bags, carrying cases, wallet products, and iPad carrying cases is planning an Initial Public Offering (IPO) in 2012. The TUMI IPO will trade as ticker symbol “TUMI”.
The date of the TUMI IPO has not yet been determined. IPO market observers are expecting the TUMI IPO to occur in either the first or second quarter of 2012, barring any major stock market turmoil that causes the IPO market conditions to change. Wall Street powerhouses, Goldman Sachs and Credit Suise are the lead underwriters for the TUMI IPO. The TUMI IPO is expected to raise up to $300 million for the company. According to recent filings, Tumi plans to use the proceeds of the IPO to repurchase outstanding stock from a London-based buyout firm that has a stake in TUMI.
The TUMI IPO is attracting interest due to the company’s consistent sales and net income growth rates, which have held up well through the 2008 and 2009 recession. TUMI’s net sales and operating income grew at an impressive compound annual growth rate of 12% and 16% respectively from 2005 through 2011. TUMI’s net sales and operating income for twelve (12) month, through September 30, 2011, were $312.8 million and $55.9 million for 2011, respectively.
Since TUMI distributes their high-end products in over sixty-five (65) countries worldwide, the TUMI IPO offers an opportunity to invest in a company that has a global sales reach to take advantage of economic growth in many regions of the world and diversify against risk of an economic slowdown in any particular region of the world.
TUMI’s growth strategy is expansion of its sales outlets to serve the growing high-end travel industry. TUMI operates seventy-two (72) full-price company-owned retail stores that are complimented by twenty-four (24) branded outlet locations that offer their products at a discount. Through 2015, TUMI expects to open sixteen (16) additional company-owned stores worldwide, which will target affluent areas that demand high quality travel gear. TUMI sells its products online through the TUMI website and e-commerce websites, such as Amazon.com and Zappos.com. When compared to industry peers, TUMI’s online sales efforts are not well developed, and have a great amount of room for future growth. TUMI also sells its products through upscale department and specialty stores, such as Neiman Marcus, Bloomingdale’s, and Nordstrom.
The TUMI IPO offers an opportunity for investors to invest in a worldwide diversified retail company that offers impressive growth rates.
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