Luxury bag maker Tumi surges in market debut
The stock was up 47 percent at $26.39 in early afternoon trading on the New York Stock Exchange on Thursday, valuing the South Plainfield, New Jersey based company at $1.79 billion.The luxury goods industry has been performing well despite economic uncertainty around the world. Strong growth in emerging markets and the tendency of increasingly affluent Asian shoppers to buy luxury goods when on vacation have also boosted sales.Tumi priced 18.8 million shares at $18 per share on Wednesday, raising $338.4 million. It had expected to sell its shares for $15 to $17 each.The maker of luggage, business cases and handbags is benefiting from a resurgence in the travel industry, which had suff Tiffany Outlet ered after the September 11 attacks on the United States.”Tumi commands great brand loyalty and has done an amazing job when it comes to selling directly to customers,” said Marsha Tiffany Outlet l Cohen, NPD Group’s chief retail industry analyst.”Tumi’s use of e commerce and social commerce to sell their products is where we’ll really see the growth story.”The IPO allowed British private equity firm Doughty Hanson to reduce its stake in the luxu Tiffany Outlet ry bags maker to Tiffany Outlet about 60.7 percent.Doughty Hanson, which previously owned 84.3 percent of Tumi’s stock, is also an investor in Netherlands based maker of activated carbon, Norit NV, which has filed to go public in the United States.”The company caters to an elite clientele, who can afford up to $2,000 individual luggage . the company will only grow,” said Scott Sweet, senior managing partner at IPO Boutique.Tumi has retail stores at premium retail venues across the globe including New York, Paris, London, Rome, Tokyo, Moscow and Milan and plans to open eight to 16 stores over the next three years.The company’s net sales rose 31 percent to $330 million in 2011. Net income rose to $16.6 million from $104,000. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.