It’s been a busy few weeks in IPO land and we are working hard to keep up. The market can offer and price deals faster than we can complete our typical analysis and financial model.

So we are doing a series of posts with just our raw notes from the roadshow presentation. This is our starting point before more research, analysis and modeling.

TUMI Notes are below, you can also read the “Tumi Story” online at their website for background.

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Way more complicated than I expected it to be. Multiple brands, very multichannel distribution.

Many different distribution methods and store types. CEO makes it sound easy.

They do seem bigger than they are, probably because their stuff travels (interesting point.)

10% of the business is online growing 50%+.

Tumi is named after the founders dog. Wanted his own business. Started out as leather goods imported from Columbia.

Got into ballistic nylon for durability and made it better and better. Then did their own stores to control experience.

Strategy was to go into lifestyle, then premium, then global.

New CEO focused more on international expansion, improved products for women.

Premium is 6% of the business. Women’s is now 11%, up from 9%.

Accessories up to 14% from 8% in 2009.

Brand has to straddle multiple segments from CEO’s to road warriors.

Compares themselves to LV, Coach as a “premium lifestyle” brand. Other luggage companies are wholesale not retail other comps are KORS, FOSL.

Other examples include Bally, Burberry, Tod’s, Hermes, Dunhill, Coach, Victorinox.

Claims 75% of what they sell is not “luggage” which is hard to believe. I bet their definition is too narrow.

TUMI is still pretty small $330M versus others especially Coach at $4.5B.

New products were only 8% per year and are now 40%.Have long lead time (15 months), shorter (9 months), retail only 6 months or less.

Doing more collaborations as well with artists (Crash, Ducati.) Tie-ins and limited editions work well. (Crash sold out in 6 weeks.)

Guidance of 8 to 16 stores is very broad because store quality is paramount – not about how many but how good.

Operating margins are much higher because they can leverage partners who put their own capital into the infrastructure.

Hong Kong Airport 7,500/sq ft, In Dubai next to Tom Ford 5,500/sq ft. Opened 10 stores in 2011. Past two years each store is at or above plan.

1,600 sq ft average store at about 1,000 sq ft sale. Target is $1,200 to $1,400.

22 stores in APAC this year, 3 just in Shanghai, will have 3 in India by YE.


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