Samsonite H1 sales rise despite ‘stronger headwinds’, mulls dual listing

Kyle Gendreau, chief executive officer of Samsonite, expressed his satisfaction with the travel bag company’s financial results for the first half of 2024, citing an increased investment in marketing as the driver behind its year-on-year constant currency net sales growth. This came despite “strong headwinds”, challenging macroeconomic conditions in China and a more competitive pricing environment in India, among other factors, the executive noted.

The group’s net sales increased 2.8 percent year-on-year for the six months ended June 30, 2024, with net sales in Asia, Europe and Latin America all increasing 2, 4.6 and 20.3 percent, respectively. For North America, net sales were described to be “relatively consistent” against a strong period last year. A post-pandemic travel resurgence was attributed to the growth, while an increase in wholesale customers was also noted.

Samsonite brand sales rose 5.8 percent, with growth across all regions, while for its sister label Tumi, sales were up 0.3 percent. American Tourister, on the other hand, saw sales slip slightly by 0.9 percent.

The group’s gross profit margin expanded to a “new first half record” of 60.2 percent, compared to its prior 58.8 percent. Its adjusted EBITDA margin also improved by 10 basis points to another record growth of 18.9 percent. The group recorded an adjusted net income growth of 3.1 million dollars, increasing to 174 million dollars, up slightly on last year’s 170.9 million dollars.

Alongside the results, Samsonite confirmed that its board had authorised the pursuit of a dual listing of its shares in the US, following an evaluation of global footprint, growth drivers and strategic priorities. The company is currently listed on the Hong Kong Stock Exchange, but is mulling a dual listing in order to “enhance value creation over time, by improving the liquidity of the company’s shares and making them more accessible to shareholders in the US and globally”.

Despite the positivity, Gendreau noted that softening consumer sentiment and macroeconomic uncertainty meant the group’s outlook had become more clouded. This was reflected in a slowing net sales growth of 1.5 percent in the second quarter of 2024, compared to the same period last year when growth was reported to be 4.1 percent.