The wheels came off of luggage maker Tumi Holdings (TUMI) Thursday after the company announced a secondary offering of 10.14 million shares at $21.10 a pop on Wednesday.
In a statement on its website posted Wednesday, Tumi said the shares in the offering will be sold by funds and affiliates of Doughty Hanson & Co. as well as other stockholders — including two of the company�s executives. Tumi also said it will not receive proceeds from the shares sold by stockholders.
Investors reacted badly to the news and sent Tumi packing, with the stock down 4.4% in afternoon trading.
Last week, Tumi took a similar beating after it reported an upbeat fourth quarter but its full-year outlook failed to match Street expectations as it forecast profit of 82 cents to 86 cents a share, missing the 87 cents a share forecast according to analysts polled by FactSet. The stock is now down 12% in the past week.
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