This week, investors piled into Tumi (
), a luggage maker, whose stock soared 23% in a day. Some saw a
growth story. Tumi earned $6.5 million in the second quarter,
which seems like a decent amount of money for a company founded
by a Peace Corps volunteer and named after a Peruvian ceremonial
knife. Some saw a Credit Suisse analyst come out bullish about
Tumi's global brand.
Another possibility for the stock surge: a bunch of hipster
investors looked in the mirror and saw themselves with one of the
company's fancy black satchels. Compare the performance of Tumi
to another company in the luxury luggage space, Coach (
). If hipsters shop at Tumi, their mothers get their leather
purses and wallets at Coach - and their nieces buy the knock-offs
plastered with big 'C's. Both stocks are down since Tumi's debut
this spring, but Tumi's down a bit less:
This could work out well for all involved. Maybe these times
call for expensive but understated luggage that you know is
luxurious but won't be perceived as ostentatious, consumerist
bling. You can take it on your upcoming African safari and not
feel like an ugly American. Also, investors seem to like buying
stocks in companies that make the toys they use, like Apple (
), or the sell the wares they like, like Amazon (
). Hipsters are trendsetters, and people who were early adopters
of tech and those stocks have done just fine.
But one word of caution to Tumi stock fanboys: not everyone's
going to run for a $1,400 Tumi suitcase, or even a $400 duffel
bag. And no matter how nice it is, it will still get destroyed -
or lost -- by the airlines.
From the editors of YCharts.
YCharts Pro Investor Service