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What: Shares of luggage-maker Tumi Holdings (NYS: TUMI) fell as much as 10% today, before finishing down 6%, despite beating earnings estimates in its quarterly report.
So what: Despite solid gains in nearly every metric, investors seemed to say "not enough" to the maker of luxury travel bags and accessories. Net sales climbed 22%, while EPS was five times higher than a year ago, at $0.15 per share, and comparable store sales also grew by 11%. EPS figures beat the $0.12 that analysts had expected, and management raised adjusted EPS guidance to $0.70-$0.73, in line with expectations.
Now what: The market's reaction to the earnings news was likely a result of its high price tag, now at a P/E of 41. But, if the company maintains its current growth rate, this number will come down quickly, and the company, known for products such as a bulletproof suitcase, seems to be making a name for itself in the industry. It's also expanding quickly through new stores. For investors looking for a piece of a fast-growing company in the luxury goods industry, today's pullback presents an enticing opportunity.
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The article Why Tumi Shares Tumbled originally appeared on Fool.com.
Jeremy Bowman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.