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]

| --- | --- | --- | |------------------------------------------------|-------|-------| | | | | | | | | | 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 ...

Financial Performance - Net sales for the three months ended September 30, 2024, were $877.7 million, a decrease of 8.3% compared to $957.7 million in the same period in 2023 (6.8% decrease on a constant currency basis)[3][4] - Gross profit for the three months ended September 30, 2024, was $520.1 million, down 8.9% from $570.9 million in the same period in 2023 (7.0% decrease on a constant currency basis)[3] - Operating profit for the three months ended September 30, 2024, was $133.0 million, a decrease of 27.2% from $182.6 million in the same period in 2023 (25.0% decrease on a constant currency basis)[3][4] - Net income attributable to equity holders for the three months ended September 30, 2024, was $66.2 million, down 39.1% from $108.7 million in the same period in 2023 (34.2% decrease on a constant currency basis)[3] - Adjusted EBITDA for the three months ended September 30, 2024, was $154.6 million, a decrease of 20.3% from $194.0 million in the same period in 2023 (18.5% decrease on a constant currency basis)[3] - Net profit for the three months ended September 30, 2024, was $71.5 million, a decrease of $45.0 million or 38.6% compared to $116.5 million in the same period last year (34.1% decrease on a constant currency basis)[5] - Adjusted EBITDA for the three months ended September 30, 2024, was $154.6 million, a decrease of $39.4 million or 20.3% compared to the same period last year (18.5% decrease on a constant currency basis)[5] - Net sales for the nine months ended September 30, 2024, were $2,646.2 million, a decrease of 3.2% compared to $2,733.9 million in the same period last year (0.6% decrease on a constant currency basis)[7] - Operating profit for the nine months ended September 30, 2024, was $447.7 million, a decrease of $47.1 million or 9.5% compared to $494.7 million in the same period last year (5.7% decrease on a constant currency basis)[8] - Profit for the nine months ended September 30, 2024, was $255.6 million, a decrease of $25.6 million or 9.1% compared to $281.3 million in the same period last year (2.7% decrease on a constant currency basis)[8] - Net profit attributable to equity holders for the nine months ended September 30, 2024, was $235.6 million, a decrease of $19.0 million or 7.5% compared to the same period last year (a decrease of 0.4% on a constant currency basis)[9] - Adjusted EBITDA for the nine months ended September 30, 2024, was $488.1 million, a decrease of $40.2 million or 7.6% compared to the same period last year (a decrease of 4.0% on a constant currency basis)[9] - Adjusted net income for the nine months ended September 30, 2024, was $253.7 million, a decrease of $42.9 million or 14.5% compared to the same period last year (a decrease of 8.4% on a constant currency basis)[9] - Net sales for the three months ended September 30, 2024, were $877.7 million, a decrease of 8.4% compared to $957.7 million in the same period in 2023[15] - Gross profit for the nine months ended September 30, 2024, was $1,584.9 million, down 1.8% from $1,614.5 million in the same period in 2023[15] - Operating profit for the three months ended September 30, 2024, was $133.0 million, a decrease of 27.2% compared to $182.6 million in the same period in 2023[15] - Net profit attributable to equity holders for the nine months ended September 30, 2024, was $235.6 million, down 7.5% from $254.6 million in the same period in 2023[15] - Total comprehensive income for the nine months ended September 30, 2024, was $228.9 million, a decrease of 11.6% compared to $259.0 million in the same period in 2023[16] - Net profit for the three months ending September 30, 2024, was $66.2 million, contributing to a total comprehensive income of $77.0 million[18] - For the nine months ending September 30, 2024, the company reported a net profit of $235.6 million, with total comprehensive income reaching $228.9 million[20] - Net sales for the three months ended September 30, 2024, decreased by $79.9 million or 8.3% (6.8% on a constant currency basis) compared to the same period in 2023, driven by weaker global consumer confidence, particularly in China, and cautious wholesale clients in North America[23] - The company reported a net profit of $254.6 million for the nine months ended September 30, 2023, contributing to a total comprehensive income of $259.0 million[21] - Net sales for the company decreased by 8.3% year-over-year to $877.7 million in Q3 2024, with a constant currency decrease of 6.8%[25] - Gross profit decreased by 8.9% to $520.1 million (59.3% gross margin) in Q3 2024 compared to $570.9 million (59.6% gross margin) in Q3 2023[70] - Operating profit declined by $49.6 million or 27.2% (25.0% on a constant currency basis) to $133.0 million, mainly due to a decrease in net sales leading to lower gross profit[75] - Profit before tax decreased by $41.0 million or 29.5% (25.8% on a constant currency basis) to $98.0 million[78] - Profit for the period decreased by $45.0 million or 38.6% (34.1% on a constant currency basis) to $71.5 million[80] - Profit attributable to equity holders decreased by $42.5 million or 39.1% (34.2% on a constant currency basis) to $66.2 million[81] - Adjusted EBITDA decreased by $39.4 million or 20.3% (18.5% on a constant currency basis) to $154.6 million, with the adjusted EBITDA margin declining by 270 basis points to 17.6%[83] - Net profit for the three months ended September 30, 2024, was $71.5 million, a decrease of 38.6% compared to the same period in 2023[84] - Adjusted EBITDA for the three months ended September 30, 2024, was $154.6 million, a decrease of 20.3% compared to the same period in 2023[84] - Adjusted net income for the three months ended September 30, 2024, was $79.7 million, a decrease of 36.6% compared to the same period in 2023[86] - Adjusted basic earnings per share for the three months ended September 30, 2024, was $0.055, compared to $0.087 in the same period in 2023[88] - Net sales for the nine months ended September 30, 2024, decreased by $87.6 million or 3.2% compared to the same period in 2023, with a 0.6% decrease on a constant currency basis[94] - Sales in Asia for the nine months ended September 30, 2024, decreased by 5.6% to $1,007.6 million, representing 38.1% of total net sales[94] - Sales in North America for the nine months ended September 30, 2024, decreased by 3.0% to $904.0 million, representing 34.1% of total net sales[94] - Sales in Europe for the nine months ended September 30, 2024, increased by 0.3% to $581.5 million, representing 22.0% of total net sales[94] - Sales of the Samsonite brand for the nine months ended September 30, 2024, increased by 0.3% to $1,382.8 million, representing 52.3% of total net sales[96] - Sales of the Tumi brand for the nine months ended September 30, 2024, decreased by 4.3% to $607.2 million, representing 22.9% of total net sales[96] - Sales of the American Tourister brand for the nine months ended September 30, 2024, decreased by 8.7% to $451.8 million, representing 17.1% of total net sales[96] - Total sales revenue for the nine months ended September 30, 2024, was $2,646.2 million, a 3.2% decrease compared to $2,733.9 million in the same period in 2023[100] - Wholesale channel sales decreased by $81.4 million or 4.8% (2.6% on a constant currency basis) due to weakened consumer confidence and cautious North American wholesale clients[103] - DTC (Direct-to-Consumer) channel sales decreased by $17.5 million or 2.3% (1.2% increase on a constant currency basis), with a net addition of 52 self-operated retail stores, bringing the total to 1,104 stores[104] - DTC e-commerce sales increased by $11.0 million or 4.0% (7.3% on a constant currency basis) to $283.1 million, accounting for 10.7% of total sales[105] - Sales in Asia decreased by $59.3 million or 5.6% (2.7% on a constant currency basis), with significant declines in India (-16.4%) and Hong Kong (-18.6%)[106][108] - Japan saw a 3.0% increase in sales (12.6% on a constant currency basis), while Australia experienced a 14.1% increase (15.1% on a constant currency basis)[108] - Latin America's same-store sales increased by 11.7% on a constant currency basis, partially offsetting declines in North America, Asia, and Europe[104] - Net sales in India decreased by $31.4 million or 16.4% (15.3% on a constant currency basis) for the first nine months of 2024 compared to the same period in 2023[109] - Total net sales in Hong Kong decreased by $16.2 million or 18.6% (18.7% on a constant currency basis) for the first nine months of 2024 compared to the same period in 2023[110] - Sampsonite brand net sales in Asia decreased by 3.2% (0.2% on a constant currency basis) for the first nine months of 2024 compared to the same period in 2023[110] - American Tourister brand net sales in Asia decreased by 7.7% (5.5% on a constant currency basis) for the first nine months of 2024 compared to the same period in 2023[110] - Tumi brand net sales in Asia decreased by 4.0% (0.3% on a constant currency basis) for the first nine months of 2024 compared to the same period in 2023[110] - Wholesale channel net sales in Asia decreased by 7.7% (5.3% on a constant currency basis) for the first nine months of 2024 compared to the same period in 2023[112] - DTC channel net sales in Asia decreased by 0.4% but increased by 3.5% on a constant currency basis for the first nine months of 2024 compared to the same period in 2023[112] - DTC e-commerce net sales in Asia increased by $2.3 million or 2.2% (5.3% on a constant currency basis) for the first nine months of 2024 compared to the same period in 2023[114] - Net sales in the US decreased by 2.5% for the first nine months of 2024 compared to the same period in 2023[117] - Net sales in Canada decreased by 11.7% (10.8% on a constant currency basis) for the first nine months of 2024 compared to the same period in 2023[117] - North America sales net revenue decreased by 3.0% to $904.0 million in the nine months ended September 30, 2024, compared to $932.3 million in the same period in 2023[118] - Samsonite brand sales in North America increased by 2.8% to $460.7 million, representing 51.0% of total North America sales[118] - Tumi brand sales in North America decreased by 5.9% to $336.3 million, representing 37.2% of total North America sales[118] - DTC e-commerce sales in North America increased by 3.0% to $112.1 million in the nine months ended September 30, 2024, compared to $108.8 million in the same period in 2023[122] - Europe sales net revenue increased by 0.3% to $581.5 million in the nine months ended September 30, 2024, compared to $579.9 million in the same period in 2023[123] - Belgium sales in Europe increased by 11.5% to $149.7 million, representing 25.7% of total Europe sales[125] - Germany sales in Europe decreased by 10.3% to $72.5 million, representing 12.5% of total Europe sales[125] - Spain sales in Europe increased by 5.2% to $53.0 million, representing 9.1% of total Europe sales[125] - The company added 14 new self-operated retail stores in North America, partially offset by the closure of 6 stores, resulting in a net increase of 8 stores to a total of 282 stores as of September 30, 2024[121] - Wholesale sales in North America decreased by 3.2% to $504.0 million, representing 55.7% of total North America sales[120] - Net sales for the nine months ended September 30, 2024, increased by 0.3% to $581.5 million compared to $579.9 million in the same period in 2023, with a 2.3% increase on a constant currency basis[127] - The DTC (Direct-to-Consumer) channel saw a 3.9% increase in net sales to $245.9 million, representing 42.3% of total net sales, with a 6.4% increase on a constant currency basis[129] - In Europe, DTC retail channel net sales increased by $3.9 million or 2.1% (4.9% on a constant currency basis) for the nine months ended September 30, 2024, compared to the same period in 2023[130] - DTC e-commerce net sales in Europe increased by $5.3 million or 10.2% (11.9% on a constant currency basis) to $56.6 million for the nine months ended September 30, 2024[131] - Latin America net sales decreased by $1.2 million or 0.8% (18.2% increase on a constant currency basis) for the nine months ended September 30, 2024, compared to the same period in 2023[132] - Mexico's net sales increased by 12.3% to $59.2 million, representing 38.8% of total Latin America net sales, with a 12.4% increase on a constant currency basis[134] - Chile's net sales decreased by 12.7% to $41.8 million, representing 27.4% of total Latin America net sales, with a 1.0% decrease on a constant currency basis[134] - Brazil's net sales decreased by 4.6% to $18.9 million, representing 12.4% of total Latin America net sales, with a 0.7% increase on a constant currency basis[134] - The "Other" category in Latin America saw a 2.1% decrease in net sales to $32.7 million, representing 21.4% of total Latin America net sales, with a 64.9% increase on a constant currency basis[134] - The company added 15 new self-operated retail stores in Europe, resulting in a net increase of 14 stores, bringing the total to 209 as of September 30, 2024[130] - Net sales for the Samsoite brand increased by 0.6% to $66.1 million, representing 43.3% of total net sales[137] - Tumi brand net sales grew significantly by 28.9% to $10.6 million, accounting for 6.9% of total net sales[137] - Wholesale channel net sales increased by 0.8% to $88.0 million, representing 57.6% of total net sales[138] - DTC (Direct-to-Consumer) channel net sales decreased by 2.9% to $64.7 million, accounting for 42.4% of total net sales[138] - Latin America DTC retail channel net sales decreased by $2.1 million or 3.5%, but increased by 17.3% on a constant currency basis[139] - The company added a net of 12 self-operated retail stores in Latin America, bringing the total to 190 stores as of September 30, 2024[139] - DTC e-commerce net sales in Latin America increased by $0.1 million or 1.6% to $8.2 million, with a 60.9% increase on a constant currency basis[140] - Gross margin improved to 59.9% from 59.1% in

Financial Performance - Consolidated net sales for the first half of 2024 reached $1,768.5 million, a 2.8% constant currency increase compared to the same period in 2023[1][2] - Net sales for the six months ended June 30, 2024, were $1,768.5 million, a decrease of 0.4% but an increase of 2.8% on a constant currency basis compared to the same period in 2023[46][48] - Gross profit margin reached a record 60.2% for the six months ended June 30, 2024, up from 58.8% in the same period in 2023, driven by increased direct-to-consumer sales and disciplined promotional discounts[46][48] - Operating profit for the six months ended June 30, 2024, was $314.7 million, an improvement of $2.6 million or 0.8% (+5.6% constant currency) compared to the same period in 2023[46][48] - Profit for the six months ended June 30, 2024, was $179.1 million, an improvement of $7.7 million or 4.5% (+11.9% constant currency) compared to the same period in 2023[46][48] - Profit attributable to equity holders was $164.3 million for the six months ended June 30, 2024, an improvement of $11.8 million or 7.7% (+16.1% constant currency) compared to the same period in 2023[46][48] - Adjusted EBITDA for the six months ended June 30, 2024, was $333.5 million, a decrease of $0.8 million or 0.3% but an improvement of 4.3% on a constant currency basis compared to the same period in 2023[46][48] - Adjusted Net Income for the six months ended June 30, 2024, was $174.0 million, an increase of $3.1 million or 1.8% (+9.3% constant currency) compared to the same period in 2023[46] - Adjusted EBITDA margin for the six months ended June 30, 2024, was 18.9%, slightly up from 18.8% in the same period in 2023[46] - Diluted earnings per share for the six months ended June 30, 2024, were $0.113, an increase of 6.7% (+15.0% constant currency) compared to the same period in 2023[46] - Adjusted EBITDA margin increased by 10 basis points to a first half record of 18.9% for the six months ended June 30, 2024, compared to 18.8% for the same period in 2023[49] - Adjusted Net Income increased by $3.1 million, or 1.8% (+9.3% constant currency), to $174.0 million for the six months ended June 30, 2024[49] - Free Cash Flow increased by $18.2 million to $81.6 million for the six months ended June 30, 2024[49] - Consolidated net sales for the six months ended June 30, 2024, were $1,768.5 million, a 2.8% increase year-on-year, but marginally lower compared to $1,776.2 million in the first half of 2023 due to negative foreign currency translation effects[56] - Net sales in Asia increased by 2.0% despite softening sentiment among Chinese consumers and a more competitive pricing environment in India[56] - Net sales in Europe and Latin America increased by 4.6% and 20.3%, respectively, but with signs of greater consumer wariness in several markets[56] - Consolidated net sales for the first half of 2024 reached $1,768.5 million, a year-on-year increase of 2.8%[57] - Asia's net sales grew by 2.0% in the first half of 2024, despite weak consumer sentiment in China and intensified price competition in India[57] - Europe and Latin America saw net sales growth of 4.6% and 20.3% respectively in the first half of 2024[57] - The Samsonite brand achieved a year-on-year net sales increase of 5.8% in the first half of 2024, with growth across all regions[58] - The Group's direct-to-consumer channel net sales increased by 4.7% and accounted for 38.1% of total net sales in the first half of 2024[58] - Gross profit margin expanded by 140 basis points to a new first half record of 60.2% in 2024[59] - Marketing investment increased to $117.4 million, or 6.6% of net sales, in the first half of 2024[60] - Fixed SG&A expenses increased by $17.3 million year-on-year to $425.5 million in the first half of 2024, accounting for 24.1% of net sales[61] - Adjusted EBITDA margin for the first half of 2024 improved to a record 18.9% compared to 18.8% in the same period in 2023[62] - The Group generated Free Cash Flow of $81.6 million in the first half of 2024, an increase of $18.2 million compared to the first half of 2023[65] - Net sales for the first half of 2024 increased by 2.8% year-on-year, with Asia, Europe, and Latin America growing by 2.0%, 4.6%, and 20.3% respectively, while North America remained stable[89][95] - The Group achieved a gross profit margin of 60.2% and an Adjusted EBITDA margin of 18.9%, both setting new first-half records[88][98] - Free Cash Flow improved by $18.2 million year-on-year to $81.6 million, with net debt decreasing to $1.0 billion and a total net leverage ratio of 1.39x[100] - Direct-to-consumer (DTC) net sales grew by 4.7%, contributing to 38.1% of total net sales, a first-half record[97][101] - The Samsonite brand saw net sales increase by 5.8% year-on-year, with growth in all regions: Asia (+5.7%), North America (+2.6%), Europe (+6.8%), and Latin America (+23.9%)[92] - Tumi brand net sales grew by 0.3%, driven by increases in Asia (+2.7%) and Latin America (+31.8%), offset by declines in North America (-1.5%) and Europe (-1.1%)[92] - American Tourister brand net sales decreased by 0.9%, with Latin America growing by 24.0%, Asia remaining flat, Europe declining by 1.5%, and North America falling by 11.9%[92] - The Group's brick-and-mortar retail and DTC e-commerce net sales grew by 2.8% and 10.0% respectively compared to the same period in 2023[97] - Marketing investment increased to 6.6% of net sales, a 20-basis point increase from the first half of 2023, while fixed SG&A expenses rose by $17.3 million to $425.5 million[99] - The company-operated retail store fleet expanded to 1,083 stores, a net increase of 82 stores compared to June 30, 2023[99] - Marketing investment increased to 6.6% of net sales in H1 2024, up 20 basis points compared to H1 2023[102] - Fixed SG&A expenses increased by $17.3 million YoY to $425.5 million in H1 2024, but remained flat compared to H2 2023 despite adding 31 new retail stores[102] - Free cash flow increased by $18.2 million YoY to $81.6 million in H1 2024, with net debt reduced to $1.0 billion and total net leverage ratio improving to 1.39x[103][108] - Adjusted EBITDA margin improved by 10 basis points to a record 18.9% in H1 2024, with Adjusted EBITDA at $333.5 million, essentially unchanged YoY[104][109] - Profit attributable to equity holders increased by $11.8 million (7.7%) to $164.3 million in H1 2024, driven by a $11.3 million reduction in net finance costs[105] - Inventories decreased by $58.2 million to $637.7 million as of June 30, 2024, compared to December 31, 2023, with net working capital efficiency improving to 14.6%[106][110] - Capital expenditures increased by $15.5 million YoY to $41.2 million in H1 2024, driven by opening 48 new company-operated retail stores[107][111] - Net sales growth slowed to 1.5% YoY in Q2 2024, with Asia declining 2.9% and North America declining 1.2%, while Europe and Latin America grew 9.5% and 23.3%, respectively[113] - Net sales growth slowed to 1.5% YoY in Q2 2024, compared to 4.1% in Q1 2024, with Asia experiencing a 2.9% YoY decline in Q2 2024, driven by a 3.5% decline in China and an 11.3% decline in India[115] - Net sales decreased by $7.7 million (0.4%) but increased by 2.8% on a constant currency basis for the six months ended June 30, 2024, compared to the same period in 2023[134] - Net sales for the first half of 2024 decreased by $7.7 million or 0.4% year-over-year, but increased by 2.8% on a constant currency basis[137] - Asia region accounted for 38.5% of net sales in 1H 2024, a slight decrease from 39.1% in 1H 2023, with a 2.0% decline in sales but a 2.0% increase on a constant currency basis[140] - North America region contributed 34.4% of net sales in 1H 2024, consistent with 1H 2023, with a 0.5% decline in sales[140] - Europe region saw a 1.8% increase in net sales, contributing 21.0% of total sales in 1H 2024, with a 4.6% increase on a constant currency basis[140] - Latin America region experienced a 2.7% increase in net sales, contributing 6.1% of total sales in 1H 2024, with a significant 20.3% increase on a constant currency basis[140] - Samsonite brand sales increased by 2.7% in 1H 2024, contributing 51.1% of total net sales, with a 5.8% increase on a constant currency basis[145] - Tumi brand sales decreased by 1.7% in 1H 2024, contributing 23.4% of total net sales, but showed a 0.3% increase on a constant currency basis[145] - American Tourister brand sales declined by 4.2% in 1H 2024, contributing 17.4% of total net sales, with a 0.9% decline on a constant currency basis[145] - Other brands (including Gregory, High Sierra, etc.) saw a 7.0% decline in sales in 1H 2024, contributing 8.1% of total net sales, with a 0.5% decline on a constant currency basis[145] - Excluding sales in Argentina and Turkey, the Group's consolidated net sales for 1H 2024 increased by 1.3% on a constant currency basis compared to 1H 2023[141] - Samsonite brand achieved strong growth in all regions for the six months ended June 30, 2024, despite high sell-in to wholesale customers in the same period of 2023[147] - Tumi brand net sales increased slightly on a constant currency basis for the six months ended June 30, 2024, driven by growth in Asia and Latin America, offset by declines in North America and Europe[148] - American Tourister brand net sales decreased slightly on a constant currency basis for the six months ended June 30, 2024, due to reduced sales in India and decreased sell-in to North American wholesale customers[149] - Net sales by product category: Travel products accounted for 65.6% (US$1,160.8 million) and non-travel products accounted for 34.4% (US$607.7 million) of total net sales for the six months ended June 30, 2024[153] - Wholesale channel net sales increased by 1.5% on a constant currency basis for the six months ended June 30, 2024, compared to the same period in 2023[157] - DTC channel net sales increased by 2.8% on a constant currency basis for the six months ended June 30, 2024, despite a 1.3% decrease in retail net sales[161] - Total DTC e-commerce net sales increased by 6.0% (US$10.8 million) to US$190.8 million for the six months ended June 30, 2024, representing 10.8% of total net sales[162] - The Group added a net of 31 company-operated retail stores during the six months ended June 30, 2024, bringing the total to 1,083 stores[161] - Same store net sales on a constant currency basis decreased by 1.4% for the six months ended June 30, 2024, with declines in North America (-5.3%) and Asia (-2.2%) partially offset by growth in Latin America (+10.4%) and Europe (+2.6%)[161] - DTC retail channel sales decreased by $6.2 million or 1.3% (2.8% increase on a constant currency basis) for the six months ended June 30, 2024, compared to the same period in 2023[163] - The company added 48 new self-operated retail stores and closed 17, resulting in a net increase of 31 stores, bringing the total to 1,083 stores as of June 30, 2024[163] - DTC e-commerce sales increased by $10.8 million or 6.0% (10.0% on a constant currency basis) to $190.8 million for the six months ended June 30, 2024, compared to the same period in 2023[164] - Net sales in Asia increased by 2.0% on a constant currency basis during the first half of 2024 compared to the first half of 2023[167] - Net sales in China increased by 3.8% ($146.2 million) in the first half of 2024 compared to the same period in 2023, driven by recovery in leisure and business travel[170][172] - Net sales in India decreased by $14.8 million or 11.7% (10.6% decrease on a constant currency basis) for the six months ended June 30, 2024, compared to the same period in 2023[171][172] - Net sales in Hong Kong (including Macau) decreased by $7.6 million or 12.8% (12.9% decrease on a constant currency basis) for the six months ended June 30, 2024, compared to the same period in 2023[171][172] - Adjusted EBITDA for the first half of 2024 was $162.3 million, with an Adjusted EBITDA margin of 23.9%[167] - Total net sales in Asia for the six months ended June 30, 2024, were $680.0 million, a 2.0% decrease compared to the same period in 2023, but a 2.0% increase on a constant currency basis[172] - Net sales in Japan increased by 5.8% ($96.4 million) in the first half of 2024 compared to the same period in 2023[172] - Net sales for the six months ended June 30, 2024, were $680.0 million, a decrease of 2.0% compared to $693.9 million in the same period in 2023, but a 2.0% increase on a constant currency basis[177] - Samsonite brand net sales increased by 1.4% to $305.7 million, representing 45.0% of total net sales, while American Tourister and Tumi brands saw decreases of 2.9% and 2.2% respectively[177] - DTC (Direct-to-Consumer) net sales in Asia increased by $0.3 million (0.2%) to $207.7 million, with a 6.1% increase on a constant currency basis, driven by the addition of 12 net new company-operated retail stores[181] - Total DTC e-commerce net sales in Asia increased by $1.6 million (2.3%) to $70.1 million, with a 6.6% increase on a constant currency basis[182] - North America net sales for the first half of 2024 were $608.3 million, a slight decrease of 0.5% compared to $611.3 million in the same period in 2023[184][188] - Adjusted EBITDA for the first half of 2024 was $121.5 million, with an Adjusted EBITDA margin of 20.0%[185] - The Group added 22 new company-operated retail stores in Asia during the six months ended June 30, 2024, partially offset by the closure of 10 stores, resulting in a net addition of 12 stores[181] - Same-store retail net sales in Asia decreased by 2.2% on a constant currency basis for the six months ended June 30, 2024, compared to the same period in 2023[181] - Wholesale net sales in Asia decreased by 3.2% to $472.3 million, while DTC net sales increased by 0.9% to $207.7 million[180] - Net sales in the United States for the first half of 2024 were $575.0 million, a slight decrease of 0.2% compared to $576.3 million in the same period in

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].

Financial Data and Key Metrics Changes - The company achieved net sales of $1.76 billion in the first half of 2024, representing a growth of 2.8% compared to the exceptional first half of the previous year [3][26] - Gross margin reached a record level of 60.2%, up 140 basis points from last year, driven by disciplined promotional management and strong growth in direct-to-consumer (DTC) channels [3][4] - Adjusted EBITDA for the first half was $333 million, with a record adjusted EBITDA margin of 18.9%, up 10 basis points year-over-year [4][26] - Free cash flow increased to $82 million, an improvement of $18 million from the previous year [4][33] Business Line Data and Key Metrics Changes - The Samsonite brand experienced growth of approximately 6.6%, while the Tumi brand was up around 0.3%, indicating a more resilient mid-market performance compared to the premium segment [8][14] - DTC sales grew by 4.7%, with e-commerce sales increasing by 10%, contributing positively to the overall gross margin [35] - American Tourister's sales were impacted by competitive discounting in India, resulting in a slight decline in net sales [15][30] Market Data and Key Metrics Changes - North America saw flat growth, with Tumi down 1.5% for the half, while excluding Tumi, the other brands showed slight growth [31][32] - Asia reported a constant currency growth of 2%, with China experiencing a 7.6% increase in net sales for the half, but a decline of 3.5% in Q2 [27][29] - Latin America continued to perform well with a revenue growth of 20.3% year-over-year [27] Company Strategy and Development Direction - The company is pursuing a dual listing in the United States to enhance liquidity and accessibility for shareholders [5][40] - Focus remains on driving high-quality sales and building a foundation for long-term profitable growth, particularly through increased advertising spend [41][42] - The company is committed to sustainability, with initiatives aimed at reducing carbon emissions and increasing the use of recycled materials in products [22][24] Management's Comments on Operating Environment and Future Outlook - Management noted a softer consumer sentiment in key markets, particularly in North America and Asia, which may impact sales trends in the second half of the year [40][41] - Despite current challenges, the company remains optimistic about the long-term growth potential in the travel sector, expecting to return to mid to upper single-digit growth in 2025 [59] - The company is strategically positioning its brands to capture market share in China and India, focusing on maintaining brand integrity while navigating competitive pressures [56][57] Other Important Information - The company announced a share buyback program of up to $200 million and reinstated its annual cash distribution of $150 million [35][34] - Fixed SG&A expenses increased by $17 million year-over-year, but remained flat compared to the second half of the previous year, despite opening 31 new stores [33][37] Q&A Session Summary Question: Concerns about gross margins amidst increased promotional activity - Management emphasized maintaining discipline in promotional strategies to protect gross margins while still driving sales [46][48] Question: Strategies to counteract pressures in China and India - The company is applying successful strategies from India to the mid-tier market in China and focusing on maintaining brand positioning without excessive promotions [52][56] Question: Growth expectations for 2025 - Management anticipates returning to mid to upper single-digit growth, contingent on consumer sentiment and travel dynamics [59]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SAMSONITE INTERNATIONAL S.A. 13-15 avenue de la Liberté, L-1931 Luxembourg R.C.S. LUXEMBOURG: B 159.469 （於盧森堡註冊成立之有限公司） （股份代號：1910） 截至 2024 年 6 月 30 日止六個月 中期業績公告 1 免責聲明 非 IFRS 計量工具 本公司於財務業績概要及財務摘要、主席報告、行政總裁報告及管理層討論與分析呈列若干非 IFRS(1)計量工具，因上述 各計量工具提供更多資訊，管理層相信有利於證券分析員、投資者及其他利益相關方更全面了解本集團的經營表現及影 響其業務的趨勢。本文所計算的此等非 IFRS 計量工具未必可與其他公司所使用類似命名的計量工具進行比較，且不應 被視為可與 IFRS 計量工具比較的計量工具。非 IFRS 計量工具作為一項分析工具有其局限性，不應被視為獨立於或代替 ...

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].

Financial Data and Key Metrics Changes - In Q1 2024, the company's revenue increased by 0.9% year-over-year, with a currency-neutral growth of 4% and same-store sales growth (SSSG) of 2.2% [2] - Gross profit margin (GPM) improved by 2.4 percentage points to 60.4%, and adjusted EBITDA margin increased by 0.4 percentage points to 18.8% [2] - Net profit attributable to shareholders rose by 18.8% year-over-year, and operating cash flow turned positive with a net inflow of $55 million [2] Business Line Data and Key Metrics Changes - Revenue growth for Samsonite brand, Tumi, and American Tourister was currency-neutral year-over-year at 7%, 2%, and 3% respectively [2] - Tumi's performance is expected to improve in H2 2024 as inventory levels normalize, despite facing high base effects in Q1 and Q2 2023 [2] Market Data and Key Metrics Changes - Revenue growth in different regions was as follows: Asia (+8%), North America (+0.3%), Europe (-0.5%), and Latin America (+18%) on a currency-neutral basis [2] - In mainland China, Q1 revenue grew by 23% year-over-year on a currency-neutral basis [2] Company Strategy and Development Direction - The company aims for revenue growth in Q2 2024 to be in the mid-to-high single digits year-over-year, with expectations for H2 to outperform H1 [2] - The company plans to maintain an advertising expense ratio of 7% and an adjusted EBITDA margin of 20% for the full year [2] Management's Comments on Operating Environment and Future Outlook - Management noted a strong growth trend in April 2024, particularly in Europe, and expects Q2 to show strong growth [2] - The company expressed satisfaction with performance in China, despite some weakness in Q2, and anticipates strong tourism demand to continue driving sales [2] Other Important Information - The company expects full-year revenue growth to be in the high single digits to low double digits [3] - The latest market capitalization is $42.2 billion, with Bloomberg consensus expecting an adjusted PE of 12x for 2024 [2] Q&A Session Summary Question: How does the company view future revenue growth? - Management sees strong growth in Q2 2024, with expectations for H2 to outperform H1, particularly in Europe [2] Question: What is the outlook for Asia and Tumi? - Tumi's performance is expected to improve in H2 2024, with strong growth anticipated across North America, Europe, and Asia [2] Question: How does the company view EBITDA margin performance and guidance? - The company expects overall EBITDA margin to improve in H2 2024, maintaining its guidance for the year [2] Question: Which regions are underperforming in the current consumer environment? - India is noted as a weak performer, while China is performing satisfactorily [2] Question: What is the company's approach to discount management and maintaining margins? - The company aims to balance sales growth with maintaining good profit margins and brand positioning [2] Question: What are the sales trends expected in different regions? - Europe is expected to see strong sales growth in Q2, while India faces significant promotional pressure [2]