Tumi Holdings, Inc. ICR XChange Presentation January 2014

Transcription

1 Tumi Holdings, Inc. ICR XChange Presentation January 2014

2 Forward Looking Statements Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Forward-looking statements reflect our current views with respect to, among other things, future events and performance. These statements may discuss our net sales, gross margin, operating expenses, operating income, net income, cash flow, financial condition, impairments, expenditures, growth, strategies, plans, achievements, dividends, capital structure, organizational structure, future store openings, market opportunities and general market and industry conditions. We generally identify forward-looking statements by words such as anticipate, estimate, expect, intend, project, plan, predict, believe, seek, continue, outlook, may, might, will, should, can have, likely or the negative version of these words or comparable words. Forward-looking statements are based on beliefs and assumptions made by management using currently available information. These statements are only predictions and are not guarantees of future performance, actions or events. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management s underlying beliefs and assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. These risks and uncertainties include those set forth in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made. We expressly disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 1

3 TUMI OVERVIEW 2

4 Who is Tumi? Tumi is an American heritage travel brand designed for the Global Citizen. 3

5 TUMI Global Citizens 4

6 Tumi s History Founded in 1975, TUMI began as an importer of leather goods before revolutionizing the consumer travel industry with the introduction of military grade ballistic nylon and the U-Zip pocket. Since it s inception, TUMI has been known for providing superior functionality, outstanding durability, and unique solutions for organization and efficiency while traveling. 5

7 Tumi Today Tumi is recognized worldwide as Best in Class and is the brand for Global Citizens, whether they are dignitaries or design leaders, star athletes or style influencers. 6

8 The Tumi customer is A trailblazer A hyper traveler On a quest for betterment A creator and collector of the best Well Educated: 90% college grads 47% professional degrees Affluent: $190,000+ household income $390,000+ investable assets Established: Mid 40 s 56% Male, 44% Female 7

9 Unique Market Position Tumi s constantly evolving product offering, featuring exceptional craftsmanship and design, competes directly with other high-end lifestyle brands. 8

10 Broad Product Appeal Tumi s travel-related and lifestyle product offering has broad appeal among both men and women % 42% 41% 44% 37% Note 1 LTM as of September 29, % 9

11 THE PATH FORWARD 10

12 Growth Strategy Expand Our Store Base Long-term potential to more than triple our current company-owned store base Improve Store Operations Continue to focus on increased store productivity Expand ITC Distribution Globally Continue to Increase Brand Awareness Partner with strong local partners in international markets Through expanded distribution and marketing investment New Product Introductions Expand e-commerce Drive traffic and incremental purchases with new products that are innovative, functional and stylish while still containing the TUMI DNA Continue to develop our e-commerce capabilities and to expand our online transactional presence into new markets 11

13 Significant New Store Opportunities with Attractive New Store Economics Real Estate Strategy Approx. 200 Potential Sites Under Review NA store base of 103 stores; 119 globally Plan to add 8 to 16 new NA and Western Europe stores (full-price and outlet) in 2014 Identified and reviewing approximately 200 potential sites for new company-owned stores Stores placed in underserved markets or in markets with a high probability of converting potential customers Existing Stores Potential Stores Attractive New and Existing Store Economics Average payback achieved is ahead of target Targeted Investment Period: < 2.5 years Contribution margin increases as stores mature Operating leverage of Comparable Store Sales Q Avg. Net Sales / Sq. Foot: $1,080 Focus on appropriately-sized stores in order to drive sales productivity and enhance customer experience 12

14 Elevate Our Store Operations Retail Performance Maximization Program ( RPM ) Implemented in 2009 Goals: Increase sales conversion rates Increase units and dollars per transaction Enhance the customer experience Program includes: Madison Avenue, New York City Training and staff development programs Effective use of visual merchandising and fixtures Rodeo Drive, Beverly Hills, CA 13

15 Expand Distribution Tumi currently has over 1,800 1 global distribution points Company-Owned Stores 1 EMEA 16 North America 108 With significant opportunity to increase distribution for the long-term Long-term potential for 200 fullprice stores, 50 outlets, and 50 owned travel retail stores globally Expand indirect-to-consumer Wholesale Doors 1,2 CASA 45 APAC 372 EMEA 511 North America 824 Notes 1 Data as of September 29, Includes partner stores, travel retail stores, and other wholesale locations business internationally through partnerships with strong local operators Launch of new Tumi.com (mid- 2014) will further expand e- commerce business 14

16 Increase Brand Awareness Enhanced marketing efforts build brand awareness and loyalty and emotionally connects the brand with the next generation of Tumi customers Unique in-store experience, knowledgeable store associates, and new store concept bring products Print to life and makes them more easily accessible to consumers Updated e-commerce site will provide a true global platform for the brand and serve as an online extension of the Tumi in-store experience Out of home 15

17 Introduce New Products New product introductions, continuous technical and design innovations, and designer collaborations create broad appeal for the Tumi brand, drive store visits, and encourage incremental purchases. 16

18 Expand E-commerce Business E-commerce Growth Drivers Intend to transition to a more efficient and cost effective technology platform during 2014 Increasing web traffic and conversion TUMI.com US Transactional presence in new markets Increasing SKUs for partner websites Reaching new customers NORDSTROM.com 17

19 Forward Looking Statements Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties. Forward-looking statements reflect our current views with respect to, among other things, future events and performance. These statements may discuss our net sales, gross margin, expenses, operating income, net income, cash flow, financial condition, impairments, expenditures, growth, strategies, plans, achievements, dividends, capital structure, organizational structure and general market and industry conditions. We generally identify forward-looking statements by words such as anticipate, estimate, expect, intend, project, plan, predict, believe, seek, continue, outlook, may, might, will, should, can have, likely or the negative version of these words or comparable words. Forward-looking statements are based on beliefs and assumptions made by management using currently available information. These statements are only predictions and are not guarantees of future performance. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. We expressly disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All future written and oral forward-looking statements made in connection with this presentation attributable to us or persons acting on our behalf are expressly qualified in their entirety by the above paragraph. April