Tumi profit forecast disappoints Wall Street

SOUTH PLAINFIELD, N.J. (AP) -- Tumi Holdings Inc. reported Wednesday that its fourth-quarter net income increased more than 30 percent but it issued a profit forecast for the year below Wall Street expectations. Shares of the luxury luggage maker fell sharply in after-hours trading.

Tumi reported that it earned was $16.9 million, or 25 cents per share, for the period that ended Dec. 31. That is compared with $12.8 million, or 24 cents per share, in the same quarter of the prior year when it had fewer shares outstanding. Its total revenue increased nearly 19 percent to $126.8 million from $107 million, with help from two extra sales days in the quarter.

Analysts polled by FactSet were expecting the company to earn 25 cents per share on revenue of $128.9 million.

The company expects to earn between 82 and 86 cents per share for the year; analysts were anticipating 87 cents per share.

Tumi expects its annual sales will increase between 18 and 20 percent. Based on its 2012 revenue of $398.6 million, this would suggest revenue for the year between $470.3 million and $478.3 million. Analysts were forecasting revenue of $472.8 million.

The company, based in South Plainfield, N.J., sells its products online and through its 114 company-owned stores. Its products are also sold in department stores and other outlets in 75 countries.

Shares fell more than 9 percent to $21.60 in after-hours trading. Its stock added 51 cents to close regular trading for the day at $23.84.