Executive Summary

• Tumi reported 4Q15 revenues of $167.7 million, up 2.3% year over year and slightly above the consensus estimate of $164.1 million. Revenues increased by 4.4% on a constant-currency basis. Adjusted EPS was $0.37, up 5.7% year over year and ahead of the consensus estimate of $0.32.
• Comps for direct-to-consumer channels decreased by 4.6% and decreased by 3.4% on a constant-currency basis, based on a 5.6% decrease in full-price sales, a 6.0% increase in outlet sales and a 14.8% decrease in e-commerce sales. Direct-to-consumer comps were up 7.0% in euros.
• 2016 sales are expected to increase by 4%–6% on flat comps, and EPS is expected to be $0.93–$0.97, compared to $0.93 for 2015.