Financial Data and Key Metrics Changes - The company reported Q4 net sales of $942 million, a 1% increase in constant currency compared to Q4 last year, which was up 21% versus 2019 [4] - Gross margin improved to 60.2%, up 30 basis points from the prior year, driven by disciplined promotion and discount strategies [5] - Adjusted EBITDA for Q4 was $195 million, with a record EBITDA margin of 20.7%, up 160 basis points year-over-year [6] - Free cash flow generation for Q4 was $135 million, an increase of $3 million from Q4 2023 [7] - For the full year, adjusted net income was $370 million, compared to $392 million in the prior year [94] Business Line Data and Key Metrics Changes - The Samsonite brand saw a 4.6% increase in Q4, while Tumi was up 4.4% in the same period [12][13] - American Tourister experienced a decline of 6.9% in Q4, but was up 1.3% when excluding India [14][15] - Non-travel product categories continued to grow, with a 2% increase overall across all brands [100] Market Data and Key Metrics Changes - Asia showed a sequential improvement, with a decline of 6% in Q4 compared to a 11.5% decline in Q3, largely influenced by India [8][10] - North America experienced a growth of 3.9% in Q4, recovering from an 8% decline in Q3 [10] - Europe delivered a solid performance with a 5.6% growth in Q4, while Latin America continued its strong trend with a 14% growth [11] Company Strategy and Development Direction - The company is focused on maintaining strong gross margins while investing in brand elevation and direct-to-consumer (DTC) channels [33][35] - There is a strategic emphasis on expanding the non-travel segment, which has shown growth potential [100] - The company plans to continue opening new stores, particularly in Asia and Europe, to enhance brand presence and consumer experience [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about travel trends remaining robust over the next several years, which is expected to drive long-term growth [111] - The company is seeing positive early signs in India and anticipates a recovery in the market [39][99] - Management acknowledged challenges in the premium luxury sector, particularly for Tumi, but noted a recovery in Q4 [100] Other Important Information - The company reduced inventory by $44 million compared to 2023, indicating effective inventory management [36] - The company has made significant progress in sustainability, with 40% of products incorporating recycled materials [75][80] Q&A Session Summary Question: What are the trends in the travel market? - Management noted that travel trends are expected to remain robust, which will support long-term growth [111] Question: How is the company managing its inventory levels? - The company successfully reduced inventory by $44 million, indicating effective management strategies [36] Question: What is the outlook for the Indian market? - Management indicated that there are signs of stabilization in India, with hopes for positive contributions in the future [99]

Analyst Background - The analyst specializes in Asian equity markets with over a decade of experience on both the buy and sell sides [1] Investment Focus - The research service focuses on value investing in Asia-listed stocks, particularly in the Hong Kong market [4] - The strategy targets deep value balance sheet bargains such as net cash stocks, net-nets, low P/B stocks, and sum-of-the-parts discounts [4] - The service also identifies wide moat stocks, including "Magic Formula" stocks, high-quality businesses, hidden champions, and wide moat compounders [4] Service Offerings - The service provides monthly updated watch lists for value investors [4] - The analyst offers investment ideas for value investors seeking opportunities in Asian markets [4] Personal Investment - The analyst holds a beneficial long position in SAMSONITE INTERNATIONAL (1910:HK) through stock ownership, options, or other derivatives [2]

Financial Data and Key Metrics Changes - Net sales for Q3 2024 were $878 million, a decrease of 6.8% compared to the record Q3 last year, but still up 21% compared to 2019 [5][9] - Gross margin for the quarter was 59.3%, down 30 basis points from Q3 of last year, primarily due to mix shifts [6][50] - Adjusted EBITDA was $155 million, representing an adjusted EBITDA margin of 17.6%, down 270 basis points from the previous year [8][50] - Free cash flow remained strong at $94 million, an increase of $5 million from Q3 of last year [8][53] - Net debt position improved to just over $1.1 billion, down from $1.39 billion a year ago [53][66] Business Line Data and Key Metrics Changes - The Samsonite brand showed resilience, with a 3.5% increase in North America, while Tumi was impacted by a slowdown in the premium and luxury retail sector [12][13] - Tumi's sales were down 8.9% year-to-date, with a notable decline in North America and Asia, but growth in Europe [25][29] - American Tourister experienced a decline of 15% due to inflationary pressures and competitive discounting, particularly in India [26][32] Market Data and Key Metrics Changes - In China, net sales decreased by 14% due to softened consumer sentiment, contrasting with a 73% increase in Q3 of the previous year [11][10] - North America saw a decline of 7.8%, with the Samsonite brand performing positively, while Tumi faced challenges [18][19] - Europe experienced a slight decline of 1.7%, but the Samsonite brand remained stable [19][28] - Latin America continued to show strong growth, up nearly 14% for the quarter [21][62] Company Strategy and Development Direction - The company is focused on maintaining margins despite competitive pressures and is investing in direct-to-consumer (DTC) strategies, with DTC e-commerce sales up 7.3% year-to-date [33][36] - Plans for a dual-listing of company securities in the U.S. are underway to enhance value creation and increase trading volumes [83] - The company aims to drive profitable sales growth through higher-margin brands and disciplined expense management [79][80] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment has softened, particularly in Q2 and Q3, but expects an improving trend into Q4 [72][73] - Travel trends remain strong, with expectations for robust growth in the coming years, despite challenges in 2024 due to comparisons with a strong prior year [76][78] - The company is committed to sustainability goals, including reducing Scope 3 emissions by 52% by 2030 [45][82] Other Important Information - The company has maintained a strong liquidity position with over $1.4 billion available [55][66] - Fixed SG&A expenses were flat year-over-year at $216 million, despite the addition of 83 company-operated stores [52][59] - The company is actively managing its inventory levels, achieving a $62 million improvement year-over-year [67] Q&A Session Summary Question: Expectations for Q4 sales growth - Management confirmed that Q4 is expected to show slight growth, with all regions performing better [85][87] Question: Impact of trade tariffs and sourcing strategy - The company has reduced its sourcing from China to around 10% for the U.S. market and is prepared to manage potential tariff impacts through strong supplier relationships and product engineering [91][92][93]

| --- | --- | --- | |------------------------------------------------|-------|-------| | | | | | | | | | Samsonite | | | | 2024 THIRD QUARTER RESULTS NOVEMBER 13, 2024 | | | | Samsonite International S.A. Stock Code: 1910 | | | G DISCLOSURE STATEMENT This presentation and the accompanying slides (the "Presentation"), which have been prepared by Samsonite International S.A. ("Samsonite" or the "Company"), do not constit ny offer or invitation to purchase or subscribe for any securities, and shall not form th ...

Core Viewpoint - Samsonite International S.A. is expected to complete its $200 million share repurchase plan by the end of 2024, with a favorable outlook on capital return and debt reduction efforts, leading to a potential shareholder yield of 9.5% for FY2024 [1][3][4] Shareholder Capital Return Outlook - Samsonite announced a $200 million buyback plan in June 2024, aiming to complete it by the end of 2024, with $30 million already spent in the first two weeks of buybacks [2][3] - The company’s potential buyback yield for FY2024 is estimated at 5.5%, alongside a consensus dividend yield of 4.0%, resulting in a total shareholder yield of 9.5% [3][4] - A dividend distribution of $150 million was paid out in July 2024 for FY2023, with expectations to maintain a similar dividend for FY2024 [3] Deleveraging Progress - As of end-Q2 2024, Samsonite's net debt-to-EBITDA ratio was 1.39 times, significantly improved from 3.68 times in Q2 2022 and 2.15 times in Q2 2023 [4] - Projections indicate further reductions in net leverage to 0.98 times by December 2025 and 0.63 times by December 2026 [4][5] - The company is focused on optimizing working capital, with a net working capital-to-revenue ratio of 14.6% for Q2 2024, an improvement from 16.2% in the previous quarter [4] Financial Performance Expectations - Free cash flow projections for Samsonite are $502 million for FY2025 and $556 million for FY2026, supporting further debt reduction [5] - The current market values Samsonite at a forward P/E ratio of 9 times, compared to a high-teens range when the company was in a net cash position in FY2015, suggesting potential for valuation multiple expansion [5][7]

Company and Industry Summary Company Overview - The company operates in the consumer goods sector, focusing on brands such as Tumi and American Tourister, with a significant presence in both the North American and Asian markets, particularly China and India. Key Points Gross Margin Management - The company maintains strict promotional and discount strategies to avoid excessive promotions despite changing market conditions. They leverage product updates and pricing strategies to sustain competitiveness, particularly in entry-level brands like American Tourister. The direct-to-consumer (DTC) business is improving annually, positively impacting gross margins, especially for the Tumi brand, which has long-term growth potential [1][1][1]. Market Challenges in China and India - The company proactively addresses challenges in the Chinese and Indian markets. In China, luxury sales are notably affected, but strong overall travel demand mitigates impacts. Tumi's products in China are functional rather than travel-oriented, allowing continued consumer purchases. The company is adjusting its product mix, particularly in the mid-tier market, and is strategically selecting store locations. The potential for growth in the Chinese market is significant, especially in the Aeon 8TM segment, despite short-term challenges [1][1][1]. - In India, the company focuses on maintaining brand value without diluting it through excessive promotions. The American Tourister brand is a key component of their Indian operations, and they are investing in the Sams0me brand in the high-end market due to its low penetration. Local manufacturing in India helps avoid import tariffs, allowing competitive positioning [1][1][1]. Annual Performance Guidance - The company expresses cautious optimism regarding annual performance, anticipating low single-digit positive growth due to a lower comparative base from the previous year's fourth quarter [1][1][1]. Discount Environment and Brand Performance - The company notes that the discount environment is becoming increasingly competitive, particularly affecting the Tumi brand. Year-to-date growth is reported at 28%, but there are expectations of slight revenue declines in the second quarter. Overall, the company expects positive growth between 1% and 2% for the year, although market uncertainties may lead to slightly lower growth than anticipated [2][2][2]. - The promotional strategies are already in place, and no significant changes are expected from the first half to the second half of the year. The company believes its product development capabilities and market positioning will maintain competitiveness against slower competitors [2][2][2]. Wholesale Business Environment - The wholesale business is operating cautiously, particularly in the North American market, where consumer sentiment is weak. However, order levels remain satisfactory, and the company is monitoring inventory levels closely. The overall health of the wholesale channel is deemed good, with a focus on maintaining gross margin targets despite the prevalence of discount sales in the U.S. market [3][3][3]. Financial Health and Debt Management - The company aims to maintain a strong balance sheet with a focus on generating substantial cash flow. There are plans for stock buybacks, indicating confidence in financial performance. The company is also considering increasing shareholder payouts while ensuring liquidity supports business investments and growth [3][3][3].

Samsonite International S.A. (OTCPK:SMSOF) Q2 2024 Earnings Conference Call August 14, 2024 8:30 AM ET Company Participants William Yue - Senior Director of Investor Relations Kyle Gendreau - Chief Executive Officer Reza Taleghani - Chief Financial Officer Conference Call Participants Carlton Lai - Daiwa Chris Gao - CLSA Anne Ling - Jefferies Dustin Wei - Morgan Stanley Operator Good morning, good afternoon and good evening, ladies and gentlemen. Welcome to the Samsonite International 2024 Interim Results E ...

Core Viewpoint - Samsonite International S.A. reported a consolidated net sales increase of 2.8% year-on-year for the first half of 2024, despite facing challenging macroeconomic conditions and a competitive pricing environment in various markets [1][2][12]. Financial Performance - Consolidated net sales for the six months ended June 30, 2024, were US$1,768.5 million, a decrease of US$7.7 million or 0.4% compared to the same period in 2023, but a 2.8% increase on a constant currency basis [24][35]. - Gross profit margin expanded to a record 60.2%, up 140 basis points year-on-year, driven by a higher share of direct-to-consumer sales and disciplined promotional discounting [5][35]. - Adjusted EBITDA for the first half of 2024 was stable at US$333.5 million, with an Adjusted EBITDA margin of 18.9%, reflecting a 10 basis point increase from the previous year [7][44]. - Profit attributable to equity holders increased by 7.7% year-on-year to US$164.3 million, aided by a reduction in net finance costs [8][42]. Sales Performance by Region - Net sales in Asia decreased by 2.0% to US$680.0 million, while North America saw a marginal decline of 0.5% to US$608.3 million. Europe recorded a 4.6% increase to US$372.3 million, and Latin America experienced a significant growth of 20.3% to US$107.5 million [25][27][29]. Brand Performance - The Samsonite brand achieved a net sales increase of 5.8% year-on-year, while Tumi's sales grew by 0.3%. The American Tourister brand saw a slight decline of 0.9% [3][30][31]. Direct-to-Consumer Channel - Direct-to-consumer (DTC) net sales increased by 4.7%, contributing to a record 38.1% of total net sales for the first half of 2024 [4][33]. Marketing and Expense Management - The company increased its marketing investment to 6.6% of net sales, reflecting a 20 basis point increase from the previous year, while maintaining discipline in managing fixed selling, general, and administrative expenses [6][38]. Financial Flexibility and Shareholder Returns - The company ended the first half of 2024 with a total net leverage ratio of 1.39x, the lowest since the acquisition of Tumi in 2016, and reinstated annual cash distributions to shareholders amounting to US$150 million [9][11].

Core Viewpoint - Samsonite International S.A. is rated as a Buy, with expectations for recovery in share price following recent underperformance and the potential positive impact of a planned dual listing [2][3]. Financial Performance - Samsonite's Hong Kong-listed shares fell by 15% from HK$28.85 on May 14, 2024, to HK$24.50 by June 11, 2024, largely due to disappointing Q1 2024 financial results [4]. - The company's Q1 2024 revenue was $859.6 million, a 0.9% year-over-year growth, significantly below the consensus estimate of $896.0 million, leading to an 11% drop in share price the following day [4][5]. - Revenue growth slowed from 15.9% YoY in Q4 2023 to 0.9% YoY in Q1 2024, with a notable high base effect from Q1 2023, which saw a 48.6% YoY increase [5]. Future Outlook - The revenue growth outlook for the remainder of 2024 is more favorable, with anticipated YoY growth rates of 6.8%, 10.2%, and 11.9% for Q2, Q3, and Q4, respectively [5]. - Samsonite's normalized net profit for Q1 2024 was $87.1 million, reflecting a 7.2% YoY increase, with expectations for improved net margins in FY 2024 [5]. Dual Listing Plans - Samsonite announced plans for a dual listing on a second leading stock exchange, which is expected to enhance its valuation multiple [6]. - Currently, Samsonite's normalized P/E ratio is 10 times, significantly lower than peers like Ralph Lauren (16 times) and LVMH (23 times), indicating potential for valuation expansion post dual listing [6].

| --- | --- | --- | --- | |-----------------------------------------------|------------------------|-------|-------| | | | | | | Samsynite | | | | | 2024 FIRST QUARTER RESULTS MAY 14, 2024 | | | | | Samsonite International S.A. Stock Code: 1910 | FULFILLING THE JOURNEY | | | G DISCLOSURE STATEMENT This presentation and the accompanying slides (the "Presentation"), which have been prepared by Samsonite International S.A. ("Samsonite" or the "Company"), do not constit ny offer or invitation to purchase or sub ...