Financial Performance - The group's net sales for the three months ended March 31, 2022, were $573.6 million, representing a 61.7% increase compared to $354.7 million for the same period in 2021[6]. - Operating profit for the same period was $58.1 million, a significant recovery from an operating loss of $47.0 million in the previous year[6]. - Adjusted EBITDA for the first quarter of 2022 was $73.2 million, compared to a loss of $28.5 million in the same quarter of 2021[6]. - The adjusted EBITDA margin improved to 12.8% from a negative 8.0% in the prior year[6]. - The group reported a net profit of $21.2 million for the first quarter of 2022, recovering from a net loss of $71.2 million in the same period last year[6]. - Earnings per share for the first quarter were $0.011, compared to a loss per share of $0.051 in the previous year[6]. - Total comprehensive income for the three months ended March 31, 2022, was $45.1 million, compared to a total comprehensive loss of $53.4 million in the prior year[15]. - The company reported a net income attributable to equity holders of $16.4 million for the three months ended March 31, 2022, compared to a loss of $72.7 million in the same period last year[124]. - The adjusted net income for the three months ended March 31, 2022, was $23.3 million, improving from a loss of $67.4 million in the same period of 2021[124]. Sales and Revenue Trends - The sales trend showed continuous improvement, particularly in February and March 2022, as travel restrictions eased in various countries[5]. - The consolidated net sales for the three months ended March 31, 2022, increased by 68.7% compared to the same period in 2021 after excluding sales from Speck[7]. - Travel product sales increased by $176.6 million or 101.6% year-over-year, driven by the rebound in domestic and regional travel, particularly in North America and Europe[35]. - Non-travel product sales rose by $42.4 million or 23.4%, with a 34.3% increase when excluding the impact of the sale of Speck[35]. - DTC channel sales net amount increased by $81.7 million or 70.2% for the three months ended March 31, 2022, compared to the same period in 2021[156]. - Wholesale channel sales net amount increased by $137.2 million or 57.6% for the three months ended March 31, 2022, compared to the same period in 2021[155]. - The total sales revenue reported in Hong Kong increased by $3.0 million or 24.1% year-over-year, with a 24.4% increase when adjusted for constant currency[163]. Cost Management and Expenses - The company implemented measures to enhance liquidity and reduce operating expenses to mitigate the impact of the COVID-19 pandemic on sales[5]. - Marketing expenses rose by 126.1% to $24.1 million, representing 4.2% of net sales, up from 3.0% in the same period last year[7]. - The company recorded a non-cash impairment charge of $0.8 million related to leasehold assets for the three months ended March 31, 2022, due to the assessment of its retail stores in Russia[58]. - Restructuring costs totaled $0.2 million for the three months ended March 31, 2022, down from $3.8 million in the same period last year, reflecting cost-cutting measures taken in response to the pandemic[60]. - The company reported a significant reduction in operating expenses as part of its strategy to enhance liquidity and resilience against the impacts of the COVID-19 pandemic[138]. Inventory and Supply Chain - The company experienced a delay in inventory replenishment, particularly in North America, which impacted the recovery pace in early 2022[5]. - Inventory increased from $348.4 million in December 2021 to $406.2 million in March 2022, an increase of about 16.6%[16]. - The company faced inventory replenishment delays, particularly in North America, which slowed the recovery pace in Q1 2022[139]. Market and Geographic Performance - North America accounted for $215.8 million or 37.6% of total net sales, showing a significant increase of 69.6% from $127.2 million in the previous year[30]. - The Asia region's net sales were $185.7 million, which is 32.4% of total sales, reflecting an 18.8% increase from $156.4 million in the same quarter of 2021[30]. - The European market saw a remarkable growth of 145.5%, with net sales rising to $126.5 million from $51.5 million year-over-year[30]. - The company has temporarily ceased all business activities in Russia since March 14, 2022, due to the Ukraine war, impacting overall sales performance[27]. Financial Position and Liquidity - Cash and cash equivalents as of March 31, 2022, were $1,057.0 million, with net debt increasing to $1,524.8 million from $1,477.2 million at the end of 2021[8]. - The company believes its existing cash and estimated cash flows will be sufficient to meet operational and capital needs at least until May 31, 2023[25]. - The company has a minimum liquidity covenant of $500.0 million that remains effective during the suspension period of financial covenants[24]. - The company continues to focus on strict control of capital expenditures, marketing activities, and discretionary spending to preserve cash[126]. Future Outlook - The company plans to increase marketing investments for the remainder of 2022 to capitalize on the ongoing recovery in the travel industry[7]. - The company continues to focus on streamlining operations to align with future development needs[5]. - The company anticipates ongoing recovery in sales due to the easing of travel restrictions and social distancing measures in various countries[26].

Financial Performance - Samsonite's performance improved significantly in 2021 due to increased vaccination rates and the easing of social-distancing measures, leading to a stronger financial position[2]. - The financial highlights indicate a disciplined approach to cost control and cash management, which supports long-term growth and shareholder value creation[2]. - The Group has significant liquidity of US$1.5 billion as of December 31, 2021, positioning it strongly to navigate ongoing COVID-19 impacts and invest for long-term growth[7]. - Net sales for the year ended December 31, 2021, reached $2,020.8 million, representing a 31.5% increase compared to $1,536.7 million in 2020[23]. - Operating profit for the year was $132.7 million, a significant recovery from an operating loss of $1,266.2 million in the previous year[23]. - Profit attributable to equity holders was $14.3 million, compared to a loss of $1,277.7 million in 2020[23]. - Adjusted EBITDA for the year was $182.3 million, recovering from a loss of $218.8 million in 2020[23]. - The Group's net sales recovery accelerated in the second half of 2021 due to the rollout of vaccines and the recovery in travel[18]. - The Group's consolidated net sales increased by US$538.3 million, or 36.3%, for the year ended December 31, 2021, when excluding the net sales of Speck[24]. - The Group recorded a gross profit margin of 54.5% for the year ended December 31, 2021, up from 46.0% in the previous year, attributed to price increases and lower promotional discounts[24]. Strategic Initiatives - The company aims to enhance shareholder value through sustainable revenue and earnings growth, focusing on increasing the proportion of net sales from direct-to-consumer e-commerce channels[6]. - Samsonite plans to invest in research and development to create lighter and stronger materials, advanced manufacturing processes, and innovative functionalities that benefit consumers[6]. - The company is committed to extending its brands into new markets and deepening penetration in existing channels through its regional management structure and distribution expertise[6]. - Samsonite's strategy includes significant investment in marketing to support its brands and initiatives[6]. - The company emphasizes its environmental, social, and governance (ESG) philosophy as part of its core business practices, aiming to lead the industry in sustainability[6]. - The Group intends to prudently increase investment in capital expenditures and software for sustainable long-term growth[7]. - The company aims to enhance its operational performance and underlying trends through strategic adjustments and cost management initiatives[23]. Market Recovery and Challenges - The Group experienced improved sales trends as government restrictions were loosened, contributing to a recovery in demand[21]. - The Group anticipates that the ongoing recovery in travel will provide opportunities for growth and market share expansion[7]. - The outlook for 2022 is mixed, with a decline in net sales for the first two months of 2022 compared to the same period in 2019 being about in line with the 28.0% decline in Q4 2021[47]. - Despite improvements in 2021, the outlook for 2022 remains mixed due to the impact of the Omicron variant, with sales in the first two months of 2022 showing a decline compared to 2019[50]. - The company has suspended all commercial activities in Russia, closing 37 retail stores and halting product imports, while donating over 10,000 bags to support Ukrainian refugees and contributing $1.0 million for humanitarian aid[50]. - The Group's net sales decline narrowed to 30.9% in Q4 2021 compared to Q4 2019, with a constant currency decline of 30.2%[99]. Product and Brand Performance - The Group operates under well-known brands including Samsonite, Tumi, and American Tourister, among others, catering to various consumer price points[6]. - The Group's core brands recorded year-on-year net sales increases as the impact of COVID-19 moderated due to vaccine rollouts and recovery in travel[124]. - Successful product launches in 2021 included the Magnum Eco, Proxis, and Lite Box suitcase lines, with a focus on sustainable materials[69]. - The upcoming Tumi Alpha Bravo collection will feature over two dozen new styles made from recycled materials, receiving positive feedback from consumers and media[69]. - The Elevation™ Plus collection is expected to meet traveler demand for functionality and sustainability, featuring a high-performance polypropylene exterior and 100% recycled PET bottle lining[70]. Cash Management and Debt - The Group generated US$387.1 million of cash from operating activities during the year ended December 31, 2021, compared to US$114.2 million used in the previous year[31]. - As of December 31, 2021, the Group had cash and cash equivalents of US$1,324.8 million and outstanding financial debt of US$2,802.0 million, resulting in a net debt position of US$1,477.2 million[31]. - Total cash generation was US$199.8 million during the year ended December 31, 2021, compared to total cash burn of (US$360.1) million in the previous year[31]. - The Group prepaid US$370.0 million of borrowings during the year ended December 31, 2021[93]. - The Group's liquidity may not be sufficient, and there is a possibility of needing additional financing[97]. E-commerce and Sales Channels - Direct-to-consumer (DTC) sales represented 38.7% of total net sales in 2021, up from 31.0% in 2020[140]. - E-commerce channels accounted for US$430.8 million of net sales, representing a year-on-year increase of US$91.1 million, or 26.8% (+24.9% constant currency)[148]. - The Group's net sales in the wholesale channel increased by US$280.7 million, or 29.3% (+27.8% constant currency), for the year ended December 31, 2021 compared to the previous year[144]. - Total DTC e-commerce net sales increased by US$29.0 million, or 13.5% (+11.8% constant currency), to US$243.6 million for the year ended December 31, 2021[147].

| --- | --- | --- | --- | |--------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | since 1910 YOUR EMPOWERING | | | | | INTERIM REPORT 中期報告 2021 | | | | | Samsonite International S.A. 新秀麗國際有限公司 | | | | Stock Code 股份代號 1910 SAMSONITE made very encouraging progress during the first half of 2021, particularly during the second quarter. With increased vaccination rates, relaxation of social-distancing measures and the re ...

Company Strategy and Positioning - Samsonite is well-positioned for long-term growth and shareholder value creation as global travel resumes[2] - The company aims to increase shareholder value through sustainable revenue and earnings growth and free cash flow generation[10] - Samsonite's strategy includes increasing the proportion of net sales from direct-to-consumer e-commerce channels[10] - The company continues to invest in research and development for lighter and stronger materials and innovative functionalities[10] - Samsonite's diverse brand portfolio targets consumers across all price points in both travel and non-travel categories[10] - The company leverages its regional management structure and marketing expertise to expand into new markets[10] - Samsonite emphasizes its commitment to environmental, social, and governance (ESG) practices through its "Our Responsible Journey" initiative[10] - The company has a rich heritage of over 110 years in the luggage industry, operating under multiple well-known brands[10] - Samsonite's organizational responsiveness and strong brand loyalty contribute to its competitive advantage[2] - The company focuses on targeted investments in marketing to support brand initiatives and growth[10] Financial Performance and Impact of COVID-19 - For the year ended December 31, 2020, net sales decreased by 57.8% to $1,536.7 million compared to $3,638.8 million in 2019[27] - Operating loss for the year was $1,266.2 million, a significant decline from an operating profit of $283.0 million in 2019[27] - The profit attributable to equity holders for the year was a loss of $1,277.7 million, compared to a profit of $132.5 million in the previous year[27] - Adjusted EBITDA for the year was a loss of $218.8 million, down from a profit of $492.2 million in 2019[27] - The adjusted EBITDA margin for the year was -14.2%, compared to a positive margin of 13.5% in 2019[27] - The COVID-19 pandemic led to temporary closures of retail stores and a substantial reduction in consumer travel and discretionary spending, affecting demand for the company's products[25] - The Group's financial condition and results of operations have been adversely affected by the pandemic, with expectations of a prolonged recovery[106] - The Group's existing cash and estimated cash flows are expected to meet operational and capital requirements at least through March 31, 2022[106] Cost Management and Restructuring - The Company has approximately US$1.5 billion in liquidity as of December 31, 2020, with a significant reduction in cash burn[12] - The Group is focused on maintaining a lower cost structure as sales recover from the impacts of COVID-19[11] - A recovery plan is in place to ensure a cost-effective and efficient re-opening, aiming to improve profit margins and market share[11] - The company implemented aggressive cost-cutting measures in response to the COVID-19 pandemic, which significantly impacted its business operations[25] - The Group has implemented measures to reduce its fixed cost base, resulting in estimated annualized fixed cost savings of approximately US$200.0 million[30] - The Group recognized total restructuring charges of US$63.0 million during the year ended December 31, 2020, which included US$8.5 million in cost of sales[30] - The Group achieved cash savings of approximately US$670 million through cost-cutting measures, significantly reducing total cash burn from US$166.7 million in Q2 2020 to US$3.6 million in Q4 2020[71] Liquidity and Financial Flexibility - The Group ended the year with liquidity of approximately US$1.5 billion, exceeding the US$500 million minimum liquidity requirement[48] - As of December 31, 2020, the Group had cash and cash equivalents of US$1,495.0 million and outstanding financial debt of US$3,230.5 million, resulting in a net debt position of US$1,735.5 million[31] - The Group's total liquidity as of December 31, 2020 was US$1,518.3 million, ensuring compliance with the US$500.0 million minimum liquidity requirement[98] - The Group borrowed US$810.3 million under its Amended Revolving Credit Facility on March 20, 2020[99] Sales Performance and Market Trends - The Group's net sales decreased by 26.1% year-on-year in Q1 2020 and further declined by 77.9% in Q2 2020 due to COVID-19 impacts[42] - The Group's core brands, Samsonite, Tumi, and American Tourister, experienced significant sales declines of 59.1%, 58.1%, and 62.2% year-on-year, respectively, while non-travel brands like Speck and Gregory saw smaller declines of 22.2% and 27.5%[67] - The net sales decline was 58.1% year-on-year in Q4 2020 and 64.7% in Q3 2020, with a further decrease of approximately 53% year-on-year in the first two months of 2021 due to COVID-19[80][84] - The Group's total net sales for the year ended December 31, 2020 were US$1,536.7 million, a decrease of 57.8% compared to US$3,638.8 million in 2019[141] - The Group's overall performance was significantly impacted by the COVID-19 pandemic, affecting all product categories and regions[145] E-commerce and Digital Strategy - Net sales through e-commerce channels increased to 22.1% of total net sales in 2020, up from 16.4% in 2019, with direct-to-consumer e-commerce net sales rising to 14.0% from 10.4%[77][79] - The company continues to invest in enhancing its digital presence and integrating e-commerce with physical channels[77][79] - The Group's strategic decision in 2019 to reduce third-party brand sales on its e-commerce website impacted DTC e-commerce sales[179] Sustainability and Innovation - The company plans to launch the Magnum Eco hard-shell luggage collection in the first half of 2021, which is made from 100% post-consumer recycled material[76][78] - The company is committed to sustainability and aims to lead the luggage industry in this area with its new product launches[76][78] - The company plans to focus on innovation and sustainability, including a suitcase repurposing and recycling initiative[125]

COVID-19 Impact - Samsonite demonstrated remarkable agility in adapting its organization and cost base in response to the unprecedented challenges posed by the COVID-19 pandemic[2]. - The recovery from the impacts of the COVID-19 pandemic is expected to be protracted compared to prior downturns, but the long-term growth prospects for travel and tourism remain optimistic[2]. - The pandemic has significantly negatively impacted the Group's performance for the first six months of 2020, with adverse effects expected on full-year 2020 results[31]. - The Company expects the recovery from the pandemic to take longer than previous disruptions, but believes it can effectively manage through the current environment[16]. - The Group's overall performance was adversely affected by COVID-19, leading to declines across all brands and product categories[132][152]. - The impacts of COVID-19 have significantly reduced demand for the Group's products due to store closures and decreased consumer spending[109]. - The Group anticipates a prolonged recovery period due to the impacts of COVID-19, despite having sufficient liquidity to navigate the current environment[118]. Financial Performance - For the six months ended June 30, 2020, net sales decreased by 54.3% to $802.3 million compared to $1,755.7 million in the same period of 2019[35]. - The operating loss for the period was $1,062.9 million, a significant decline from an operating profit of $124.0 million in the prior year[35]. - Profit attributable to equity holders for the period was a loss of $974.0 million, compared to a profit of $49.1 million in the same period of 2019[35]. - Adjusted EBITDA for the first half of 2020 was a loss of $122.9 million, down from a profit of $213.5 million in the same period of 2019[35]. - The adjusted EBITDA margin fell to -15.3% from 12.2% in the previous year[35]. - The Group incurred a loss of $975.9 million for the six months ended June 30, 2020, compared to a profit of $58.3 million for the same period in the previous year, primarily due to the negative impacts from the COVID-19 pandemic[47]. - The Group's net sales decreased by US$953.4 million, or 54.3% year-on-year for the first half of 2020 due to the impacts of COVID-19[108]. Cost Management - Significant actions have been taken to preserve cash and implement permanent cost-saving measures to reduce the fixed cost base[16]. - The Company continues to implement aggressive cost-cutting measures to navigate current and anticipated impacts from the pandemic[31]. - The Group expects to achieve close to US$600 million in cash savings through aggressive reductions in SG&A expenses, a freeze on capital expenditures, and stringent management of product purchases and working capital[55]. - The Group implemented cost-saving initiatives including permanent headcount reductions and significant reductions in capital expenditures and marketing expenses[115]. - No cash distribution will be paid to shareholders in 2020 as part of the cost-saving measures[115]. Liquidity and Financing - The Company has approximately US$1.6 billion in liquidity as of June 30, 2020, providing confidence to navigate challenges from the COVID-19 pandemic[16]. - On March 20, 2020, the Company borrowed US$810.3 million under its amended revolving credit facility to ensure access to liquidity amid the pandemic[50]. - The Group entered into a Third Amended Credit Agreement on April 29, 2020, to suspend the requirement to test financial covenants from the beginning of Q2 2020 through the end of Q2 2021[50]. - A Fourth Amended Credit Agreement was established on May 7, 2020, providing an additional term loan B facility with an aggregate principal amount of US$600.0 million to enhance financial flexibility[50]. - The Group's liquidity was enhanced by increasing the maximum borrowings under its revolving credit facility by US$200 million to US$850 million[114]. Sales Performance - The Group's net sales decreased by US$953.4 million, or 54.3%, for the six months ended June 30, 2020, compared to the same period in 2019[120]. - The travel product category experienced a significant decrease in net sales of US$614.5 million, or 58.5%, compared to the prior year[152]. - Non-travel category net sales decreased by US$338.9 million, or 48.1%, with business products down by US$160.4 million, or 49.4%[152]. - The Group's direct-to-consumer (DTC) e-commerce channel saw a net sales decrease of 35.6% year-on-year, compared to declines of 60.2% and 53.3% in DTC retail and wholesale channels, respectively[74]. - Net sales in North America for the first half of 2020 were US$321.0 million, representing 40.0% of total net sales, a decrease of 50.9% compared to 2019[125]. Strategic Initiatives - The company aims to increase shareholder value through sustainable revenue and earnings growth, focusing on free cash flow generation[12]. - Samsonite plans to increase the proportion of net sales from the direct-to-consumer channel by growing e-commerce net sales and enhancing its retail presence[13]. - The company will continue to invest in research and development to create lighter and stronger materials, advanced manufacturing processes, and innovative designs[13]. - Samsonite's strategy includes leveraging its regional management structure and marketing expertise to expand into new markets and deepen penetration in existing channels[13]. - The company is committed to incorporating its environmental, social, and governance (ESG) philosophy into its core business practices[13].

Financial Performance - Net sales reported at $3,638.8 million, a decrease of 4.2% compared to the previous year[21]. - Operating profit decreased to $283.0 million, down 39.4% from the prior year[21]. - Profit for the year was $153.4 million, reflecting a 40.3% decline year-over-year[21]. - Profit attributable to equity holders was $132.5 million, a decrease of 44.0% compared to the previous year[21]. - Adjusted Net Income was $215.9 million, down 26.7% from the prior year[21]. - Adjusted EBITDA reported at $492.2 million, a decrease of 19.8% year-over-year[21]. - Adjusted EBITDA Margin was 13.5%, down from 16.2% in the previous year[21]. - Basic earnings per share (EPS) was $0.093, a decline of 44.1% compared to the previous year[21]. - Diluted EPS also reported at $0.093, down 43.8% year-over-year[21]. - Adjusted Basic EPS was $0.151, reflecting a decrease of 26.9% from the prior year[21]. Market Strategy - Samsonite aims to increase shareholder value through sustainable revenue and earnings growth, focusing on free cash flow generation[11]. - The company plans to enhance direct-to-consumer sales, targeting an increase in e-commerce net sales and expanding its physical retail presence[11]. - Samsonite's strategy includes leveraging regional management and distribution expertise to penetrate new markets and deepen existing channels[11]. - The company continues to diversify its business across geographies, brands, product categories, and distribution channels to enhance long-term growth and shareholder value[39]. - The Group's strategy includes investing resources to support the growth of its DTC e-commerce business and targeted expansion of its bricks-and-mortar retail business[117]. Brand Performance - The Group's diversified brand portfolio includes well-known names such as Samsonite®, Tumi®, and American Tourister®, catering to various consumer price points[10]. - The Tumi brand saw net sales growth of 1.8% in 2019, with significant gains in Asia (+8.7%), Europe (+15.0%), and Latin America (+42.4%), despite a decline in North America[40]. - American Tourister recorded a 1.0% increase in sales, while Samsonite brand sales remained stable with a slight decrease of 0.5%[43]. - Tumi brand net sales increased by US$24.0 million, or 14.6% (+14.9% constant currency) for the year ended December 31, 2019, compared to the previous year[146]. Cost Management - The company took decisive actions to manage business challenges and enhance competitive advantages for long-term growth[39]. - The company’s management team is focused on tightening expense and working capital controls to improve profitability going forward[42]. - Marketing expenses decreased by US$31.7 million or 14.3% to US$189.5 million for the year ended December 31, 2019, representing 5.2% of net sales[25]. - The Group recognized a non-cash impairment charge of US$86.4 million during the year, including US$48.0 million for eBags assets[26]. - The Group's profit improvement initiatives included costs that impacted the overall financial performance for the year[31]. Cash Flow and Debt - The Group generated $576.2 million of cash from operating activities during the year ended December 31, 2019, compared to $307.4 million for the previous year[32]. - As of December 31, 2019, the Group had cash and cash equivalents of $462.6 million and outstanding financial debt of $1,768.0 million[32]. - The net debt position of the Group was $1,305.3 million as of December 31, 2019, compared to $1,508.2 million in the previous year[32]. - The Group's pro forma net leverage ratio as of December 31, 2019, was 2.63:1.00, and the pro forma consolidated cash interest coverage ratio was 8.16:1.00 for the year ended December 31, 2019[45]. Sustainability Initiatives - The company is committed to incorporating environmental, social, and governance (ESG) principles into its core business practices[12]. - The Group is committed to sustainability, launching a global strategy titled 'Our Responsible Journey' on March 11, 2020[46]. - The long-term goal for the Group is to become carbon neutral by 2025, as part of its sustainability strategy launched on March 11, 2020[68]. - Since 2018, the Group has launched more than 50 collections worldwide that include sustainable materials, such as recycled PET and recycled nylon[67]. Challenges and Risks - The document contains forward-looking statements regarding future performance and market conditions, which are subject to risks and uncertainties[16]. - The decrease in operating profit and net income indicates challenges in the market environment and operational efficiency[2]. - The Group's performance was negatively impacted by headwinds in key markets including the U.S., Hong Kong, South Korea, and Chile, with a planned reduction in B2B sales in China during the first half of 2019[78]. - Due to uncertainties from the COVID-19 outbreak, the Board decided not to recommend a cash distribution to shareholders in 2020, with intentions to resume in future years post-recovery[45].

Company Overview - Samsonite International S.A. is the world's largest travel luggage company, with over 100 years of heritage[18]. - The company operates multiple brands across various price points, focusing on expanding its presence in both travel and non-travel product categories[18]. - The company has transformed its business model from reliance on a single brand to operating multiple brands globally[14]. Strategic Goals - The company aims to increase shareholder value through sustainable revenue and earnings growth, targeting a higher proportion of net sales from direct-to-consumer channels[18]. - The company plans to invest in research and development to create lighter and stronger materials and innovative functionalities[18]. - The company emphasizes the growth of its direct-to-consumer e-commerce sales and targeted expansion of its retail presence[18]. - Continued investment in marketing is aimed at supporting the global expansion of Tumi and enhancing visibility for other brands[18]. - The company leverages its regional management structure and distribution expertise to penetrate new markets and deepen existing channels[18]. - Samsonite's strategy includes developing a well-diversified, multi-brand, multi-category, and multi-channel business model[18]. - The Group's strategy focuses on diversifying its business across geographical markets, brands, product categories, and distribution channels to enhance resilience[44]. Financial Performance - The Group reported unaudited consolidated interim financial statements for the six months ended June 30, 2019, alongside comparative figures for the same period in 2018[23]. - Net sales for the six months ended June 30, 2019, were reported at $1,755.7 million, a decrease of 5.0% compared to $1,848.7 million in the same period of 2018[27]. - Operating profit decreased by 38.5% year-on-year to $124.0 million from $201.8 million[27]. - Profit for the period fell by 25.1% to $58.3 million compared to $77.9 million in the previous year[27]. - Profit attributable to equity holders decreased by 27.5% to $49.1 million from $67.8 million in the same period last year[27]. - Adjusted Net Income decreased by 19.0% to $97.0 million compared to $119.8 million in the previous year[27]. - Adjusted EBITDA was reported at $213.5 million, a decrease of 22.9% from $276.8 million in the same period of 2018[27]. - Basic earnings per share (EPS) decreased by 27.8% to $0.034 from $0.048 in the previous year[27]. - Diluted EPS also decreased by 27.2% to $0.034 from $0.047 in the same period last year[27]. - Adjusted Basic EPS decreased by 19.3% to $0.068 compared to $0.084 in the previous year[27]. - Adjusted EBITDA margin was reported at 12.2%, down from 15.0% in the same period of 2018[27]. Market Challenges - The company faced headwinds in the U.S., China, South Korea, and Chile, impacting overall sales performance[33]. - The strengthening of the US Dollar negatively impacted reported net sales by approximately US$65.2 million year-on-year, resulting in a 5.0% decrease in reported net sales to US$1,755.7 million[41]. - The company anticipates a more volatile second half of 2019 due to escalating U.S.-China trade tensions and other geopolitical factors[55]. Brand Performance - Tumi brand net sales grew by 4.8% in the first half of 2019, with significant increases in Asia (+11.9%), Europe (+20.4%), and Latin America (+178.2%), despite a 2.9% decline in North America[48]. - Samsonite brand net sales decreased by 2.4% in the first half of 2019, but new product launches are expected to improve performance[52]. - American Tourister brand net sales decreased by 0.8% year-on-year, following a strong first half in 2018 with 24.2% growth[51]. Cost Management - The management team implemented tighter expense and working capital controls, which began to positively impact profitability in the second quarter of 2019[42]. - The Group is focused on managing its cost base to position for future growth and has implemented expense and working capital controls[65]. - The company plans to moderate marketing spend in the second half of 2019 to address current business challenges[48]. Cash Flow and Debt - The Group generated $192.6 million of cash from operating activities during the six months ended June 30, 2019, compared to $56.2 million for the same period in the previous year[38]. - Cash and cash equivalents as of June 30, 2019, were $489.3 million, with outstanding financial debt of $1,922.1 million, resulting in a net debt position of $1,432.8 million[38]. - The Group's net debt position was US$1,432.8 million as of June 30, 2019, a reduction of US$155.6 million compared to the same date a year ago[55]. Future Outlook - The Group expects profit improvement initiatives to enhance results going into the remainder of 2019 and into 2020[44]. - The company aims to enhance profitability through cost-cutting initiatives and targeted retail expansion while maintaining control over non-advertising SG&A expenses[71]. - Significant investments in product research and development are planned to drive global brand success, with a strong new product pipeline for the remainder of the year[70].

Financial Performance - Samsonite reported a continuous annual increase in turnover for the seventh consecutive year since its flotation in 2011, indicating strong business fundamentals [2]. - For the year ended December 31, 2018, the Group's net sales reached a record level of US$3,797.0 million, reflecting an increase of 8.8% from the previous year [10]. - Gross profit margin increased to 56.5% for the year ended December 31, 2018, up from 56.1% for the year ended December 31, 2017 [10]. - Operating profit increased by US$43.5 million, or 10.3%, year-on-year to US$467.4 million [11]. - Adjusted Net Income increased by US$34.0 million, or 13.0%, to US$294.5 million for the year ended December 31, 2018 [11]. - The Group's reported net income decreased by US$98.2 million, or 27.6%, to US$257.2 million due to non-cash expenses and tax impacts [12]. - Profit attributable to equity holders increased by US$53.3 million, or 23.9% (+23.0% constant currency), excluding certain non-cash charges and tax impacts, while reported profit decreased by US$97.5 million, or 29.2%, to US$236.7 million [13]. - Adjusted EBITDA increased by US$33.4 million, or 5.8% (+5.7% constant currency), to US$613.6 million, with an adjusted EBITDA margin of 16.2% compared to 16.6% the previous year [13]. - The Group's financial metrics are presented alongside non-IFRS measures to provide a comprehensive view of operational performance [10]. Market Strategy and Growth - The company aims to increase shareholder value through sustainable revenue and earnings growth, focusing on free cash flow generation [6]. - Samsonite plans to enhance its direct-to-consumer channel, targeting an increase in e-commerce net sales and expanding its physical retail presence [6]. - The company will continue to invest in marketing to support the global expansion of Tumi and enhance visibility for its other brands, including Samsonite and American Tourister [6]. - The management emphasizes the importance of leveraging regional management structures and marketing expertise to penetrate new markets [6]. - Samsonite's strategic focus includes increasing the proportion of net sales from direct-to-consumer channels [6]. - The company aims to diversify into a multi-brand, multi-category, and multi-channel luggage and accessories business [6]. - The company is focused on expanding Tumi's international presence and investing in product launches and marketing for core brands [36]. - The long-term outlook for the global bags and luggage market remains promising, with continued investment planned to drive future growth [68]. Sales Performance by Region and Brand - Net sales in North America increased by 6.5% year-on-year to US$1,483.0 million, with organic growth of 3.9% excluding eBags [48]. - The Group's net sales in Asia increased by 10.2% to US$1,324.2 million, driven by strong performances from Tumi, American Tourister, and Samsonite brands [48]. - Tumi achieved an 11.9% increase in net sales to US$762.1 million in 2018 [28]. - American Tourister recorded net sales of US$667.8 million in 2018, an increase of 16.5% compared to 2017 [29]. - Net sales in Europe increased by 8.6% to US$809.9 million in 2018, driven by strong performances in Italy (+8.1%), the UK (+10.3%), Spain (+5.7%), and Russia (+25.8%) [49]. - Latin America saw a 15.5% year-on-year increase in net sales to US$176.4 million, with Mexico growing by 12.0% and Brazil by 43.1% [51]. E-commerce and Direct-to-Consumer Sales - DTC e-commerce net sales increased by 31.3% to US$378.8 million in 2018, with a growth of 28.4% excluding eBags [33]. - Total retail net sales growth was 11.6%, driven by a 3.2% same-store sales increase and the addition of 84 new company-operated retail stores in 2018 [33]. - DTC net sales as a percentage of total business rose from 33.4% in 2017 to 35.9% in 2018 [33]. - Overall DTC sales increased by 16.5% to $1,361.5 million, representing 35.9% of total net sales, up from 33.4% in the previous year [61]. - E-commerce sales accounted for $580.8 million, or 15.3%, of total net sales in 2018, representing a year-on-year increase of $92.8 million, or 19.0% [110]. Financial Health and Debt Management - The Group generated US$307.4 million of cash from operating activities, down from US$341.3 million in 2017, with cash and cash equivalents of US$427.7 million and outstanding financial debt of US$1,935.8 million as of December 31, 2018 [13]. - The Group's net debt position improved by US$100.9 million year-on-year to US$1,508.2 million as of December 31, 2018 [26]. - The refinancing involved the issuance of €350.0 million 3.500% senior notes due 2026, which were used to refinance original senior credit facilities and cover associated costs [13]. - The new senior credit facilities include a US$828.0 million senior secured term loan A facility and a US$665.0 million senior secured term loan B facility, with lower interest rates compared to the original facilities [16]. - Pro forma total net leverage ratio improved to 2.45:1.00 as of December 31, 2018, compared to 2.74:1.00 at the same date the previous year [68]. Operational Efficiency and Cost Management - Distribution expenses as a percentage of net sales increased to 31.9% in 2018, up from 30.7% in 2017 [63]. - General and administrative expenses decreased by US$6.9 million, or 2.9%, to US$233.0 million, representing 6.1% of net sales [187]. - Average inventory turnover days increased to 133 days in 2018 from 120 days in 2017, attributed to higher inventory to support customer demand and retail store expansion [66]. - Net working capital efficiency improved from 14.0% at the end of H1 2018 to 13.6% at the end of 2018 [34]. Research and Development - Research and development investments will focus on creating lighter and stronger materials, advanced manufacturing processes, and innovative designs [6]. - The company is diversifying its supplier base to improve sourcing capabilities while maintaining quality and cost control [36]. - Significant investments in product research and development and marketing are planned to fuel brand success globally [68].