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]

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

Financial Performance - For the three months ended March 31, 2024, net sales were $859.6 million, an increase of 0.9% compared to $852.1 million for the same period in 2023, with a 4.1% increase when adjusted for constant currency[10]. - Gross profit for the same period was $519.5 million, up 5.0% from $494.5 million in the prior year, resulting in a gross margin of 60.4%, compared to 58.0% in 2023[10]. - Operating profit reported was $149.8 million, a 3.5% increase from $144.7 million year-over-year, with a 9.3% increase when adjusted for constant currency[10]. - Profit for the period was $90.5 million, reflecting a 7.8% increase from $83.9 million in the same quarter of 2023, with a 13.5% increase when adjusted for constant currency[10]. - Adjusted net income was $87.1 million, up 7.2% from $81.2 million in the previous year, with a 13.1% increase when adjusted for constant currency[7]. - Adjusted EBITDA for the quarter was $161.2 million, a 3.1% increase from $156.4 million year-over-year, with an adjusted EBITDA margin of 18.8%[7]. - Basic earnings per share were $0.057, an increase of 11.6% from $0.051 in the same quarter of 2023[7]. - For the three months ended March 31, 2024, net profit attributable to equity holders was $82.9 million, an improvement of $9.1 million or 12.3% compared to $73.8 million in the same period last year[12]. - Adjusted net income for the three months ended March 31, 2024, was $87.1 million, up $5.9 million or 7.2% from $81.2 million, driven by improved net sales and gross margin[12]. - The company reported a diluted earnings per share of $0.056 for the three months ended March 31, 2024, compared to $0.051 in the same period last year[20]. - The profit for the three months ended March 31, 2024, was $90.5 million, an increase of $6.6 million or 7.8% from $83.9 million in the same period last year[72]. Sales and Revenue Breakdown - Net sales for the three months ended March 31, 2024, were $859.6 million, compared to $852.1 million in the same period last year[20]. - Net sales by region showed that Asia accounted for $340.1 million (39.6%), North America $285.3 million (33.2%), Europe $175.5 million (20.4%), and Latin America $58.5 million (6.8%) for the three months ended March 31, 2024[33]. - The travel product category generated net sales of $558.3 million (64.9%), while the non-travel category generated $301.3 million (35.1%) for the three months ended March 31, 2024[40]. - The brand Samsonite reported a net sales increase of $15.6 million or 3.7%, with a 6.5% increase when adjusted for constant currency for the three months ended March 31, 2024[38]. - The company's Tumi brand reported a slight decrease in net sales of $0.5 million or 0.3%, but a 1.6% increase when adjusted for constant currency[38]. - The leisure product category saw a significant increase in net sales of $7.8 million or 9.6%, with a 19.2% increase when adjusted for constant currency[41]. - The European region experienced a slight decline in net sales of 2.5% compared to the previous year, reflecting challenges in that market[33]. - DTC channel net sales increased by $11.2 million or 3.7%, with a constant currency increase of 7.6%, reaching $319.1 million[45]. - DTC e-commerce sales increased by $5.8 million or 7.1%, reaching $87.0 million, with a constant currency increase of 11.0%[47]. - Sales in Germany for the three months ended March 31, 2024, decreased by $3.1 million or 12.5% compared to the same period in 2023[55]. - Sales in France decreased by $1.5 million or 8.8% year-over-year, while Italy saw a decrease of $1.2 million or 5.8%[55]. Expenses and Cost Management - Marketing expenses increased to $52.8 million, a rise of 5.6% from $50.0 million in the prior year, representing 6.1% of net sales, up from 5.9%[10]. - Distribution expenses rose by $22.9 million or 9.8% to $257.6 million, accounting for 30.0% of net sales[61]. - General and administrative expenses decreased by $4.3 million or 6.6% to $59.9 million, accounting for 7.0% of net sales[63]. - The net financial expenses for the three months ended March 31, 2024, decreased by $8.2 million or 21.4% to $30.1 million compared to $38.3 million for the same period in 2023[66]. - Interest expenses on loans and borrowings decreased by $2.1 million to $23.4 million for the three months ended March 31, 2024, compared to $25.5 million in the same period last year[69]. Cash Flow and Liquidity - Free cash flow for the period was $6.5 million, an increase of $67.9 million compared to the previous year, benefiting from positive changes in working capital and increased adjusted net income[12]. - Operating cash flow for the three months ended March 31, 2024, was $99.8 million, significantly higher than $24.2 million in the same period last year[29]. - Cash and cash equivalents rose to $744.5 million at the end of Q1 2024, compared to $716.6 million at the end of Q4 2023, marking a growth of 3.9%[29]. - Total liquidity as of March 31, 2024, was $1,589.8 million, compared to $1,562.0 million at the end of 2023[12]. - The company experienced a positive change in working capital, contributing to the increase in operating cash flow and adjusted net income[85]. Debt and Financing - As of March 31, 2024, cash and cash equivalents totaled $744.5 million, while total financial debt was $1,824.5 million, resulting in net debt of $1,079.9 million, down from $1,107.4 million at the end of 2023[12]. - The total loans and borrowings as of March 31, 2024, amounted to $1,824.5 million, down from $2,010.7 million as of March 31, 2023[66]. - The company entered into a revised credit agreement on June 21, 2023, which includes a $800 million secured A term loan, a $600 million secured B term loan, and an $850 million revolving credit facility[90]. - The company must maintain a total net leverage ratio not exceeding 4.50:1.00 and a cash interest coverage ratio of no less than 3.00:1.00[99]. - The company has established various negative covenants in its agreements, restricting additional debt and asset sales among other activities[107]. Investments and Capital Expenditures - The company invested $13.2 million in property, plant, and equipment, and software during Q1 2024, compared to $9.7 million in Q1 2023[29]. - The company plans to continue investing in property, plant, and equipment to upgrade and expand its retail store network throughout the remainder of 2024[85].

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- ...

Financial Performance - Samsonite achieved strong net sales increases across all regions and core brands, driven by ongoing growth in travel and tourism [2]. - The company reported a record high gross profit margin, significantly enhancing profitability through disciplined expense management [2]. - Net sales for the year ended December 31, 2023, were $3,682.4 million, an increase of 27.9% compared to $2,879.6 million for the year ended December 31, 2022 [34]. - Operating profit for the year ended December 31, 2023, was $743.7 million, reflecting a 51.1% increase from $492.1 million in the previous year [34]. - Profit attributable to equity holders for the year ended December 31, 2023, was $659.1 million, a 56.5% increase compared to $421.2 million for the year ended December 31, 2022 [34]. - Adjusted EBITDA for the year ended December 31, 2023, was $709.3 million, with an adjusted EBITDA margin of 19.3% [34]. - The Group's financial performance reflects a strong recovery and growth trajectory post-pandemic, with significant improvements in key financial metrics [34]. - Free Cash Flow for the year ended December 31, 2023, was US$284.5 million, an increase of US$201.0 million, or 240.6%, compared to US$83.5 million in the previous year [45]. - The Group's net sales surpassed 2019 levels by 17.5% in 2023, a significant improvement compared to a 10.4% decrease in 2022 [49]. - The Group's adjusted EBITDA margin improved to 19.3% for the year ended December 31, 2023, from 16.4% for the year ended December 31, 2022 [42]. Marketing and Brand Strategy - The company aims to increase the proportion of net sales from its direct-to-consumer e-commerce channel [6]. - Investment in marketing will be increased to support the company's brands and initiatives [6]. - The Group plans to increase marketing investment in 2024, targeting advertising spend of approximately 7.0% of its net sales to drive future growth across all brands [11]. - The Group's marketing investment strategy is designed to support brand development and drive sales growth in the coming years [9]. - The Group's marketing expenses increased by US$85.5 million, or 54.8%, to US$241.5 million for the year ended December 31, 2023, representing 6.6% of net sales [40]. - The company aims to limit promotional discounts to enhance gross profits while maintaining disciplined fixed expense management [65]. - Marketing spend is targeted at approximately 7.0% of net sales for 2024, aimed at supporting product innovation and retail enhancements [95]. Sustainability and ESG Initiatives - The company is committed to incorporating its environmental, social, and governance (ESG) philosophy into core business practices [8]. - The Group is committed to sustainability through its "Our Responsible Journey" initiative, leading the transformation of the luggage industry [11]. - The share of net sales from products made at least in part from recycled material increased to approximately 34% in 2023, up from about 23% in 2022 [93]. - 100% renewable electricity usage was achieved in all operations, two years ahead of the 2025 target [93]. - The ambition is to become the world's most sustainable lifestyle bag and travel luggage company while continuing to grow net sales and profitability [101]. Regional Performance - The Group expects global travel and tourism growth to remain healthy in 2024, with Asia continuing to see travel growth as outbound travel from China improves [11]. - Net sales in Asia rose by 61.7% in 2023, driven by an 88.4% increase in net sales in China due to the recovery in domestic travel [47]. - The Group anticipates steady growth in travel in North America and Europe, with stronger prospects in Europe due to the return of Chinese travelers [11]. - Net sales in North America increased by US$149.9 million, or 13.4% (+13.7% constant currency) for the year ended December 31, 2023 [182]. - Net sales in Europe increased by US$110.9 million, or 16.7% (+16.8% constant currency), for the year ended December 31, 2023, when excluding the Russia Net Sales [118]. Operational Efficiency - The Group maintains disciplined expense management on fixed selling, general and administrative (SG&A) expenses, expecting fundamentally higher profitability from a more efficient cost structure [11]. - Fixed SG&A expenses improved to 22.7% of net sales in 2023, 140 basis points lower than the 24.1% in 2022 [56]. - The reduction in net debt and strong adjusted EBITDA growth reflects effective cash and debt management strategies [62]. - The company plans to maintain discipline in managing expenses to drive operating leverage and sustain strong Free Cash Flow generation [96]. Future Outlook - The Group plans to leverage its regional management structure and distribution expertise to extend its brands into new markets [6]. - The Group will continue to invest in marketing to drive further net sales growth [40]. - Global travel and tourism growth is expected to remain healthy, with international tourism projected to fully recover to pre-pandemic levels in 2024, showing a 2% increase compared to 2019 [98]. - The company expresses confidence in capturing opportunities from ongoing growth in travel and tourism through product innovation and brand communication [69].

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- ...

| --- | --- | --- | --- | |-----------------------------------------------|------------------------|-------|-------| | | | | | | Samsynite | | | | | | | | | | 2023 ANNUAL RESULTS MARCH 13, 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 o ...

Financial Performance - For the fiscal year ending December 31, 2023, the company reported a net sales of $3,682.4 million, representing a 27.9% increase compared to $2,879.6 million in 2022[15]. - Gross profit for the same period was $2,182.8 million, up 36.0% from $1,605.4 million in the previous year, with a gross margin of 59.3%[15]. - Operating profit increased by 51.1% to $743.7 million from $492.1 million in 2022, with total expenses rising by 56.5% to $659.1 million[15]. - The net profit for the year was $450.3 million, a 33.1% increase from $338.3 million in 2022, with profit attributable to equity holders rising by 33.3% to $417.0 million[15]. - Adjusted net income was $392.4 million, reflecting a 32.5% increase from $296.0 million in the previous year[15]. - Adjusted EBITDA for the year was $709.3 million, a 50.2% increase compared to $472.3 million in 2022, with an adjusted EBITDA margin of 19.3%[15]. - Basic earnings per share increased by 32.7% to $0.289 from $0.218 in the previous year, while diluted earnings per share rose by 32.1% to $0.287[15]. - The company reported consolidated net sales of $3,682.4 million for the year ending December 31, 2023, representing a year-over-year growth of 30.4%[23]. - The company reported a total comprehensive income of $429.1 million for the year, compared to $367.7 million in 2022, marking a 17% increase[63]. Market and Sales Growth - Sales in China increased by 88.4% year-over-year, significantly contributing to a 61.7% rise in net sales across Asia[23]. - The company continues to explore market opportunities and strategies for expansion, although specific future outlooks were not detailed in the provided content[6]. - The company anticipates steady growth in the global travel and tourism industry in 2024, driven by recovering consumer demand[28]. - The company plans to allocate approximately 7.0% of net sales to marketing expenses in 2024 to support new product lines[29]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[60]. - The company is currently evaluating the potential impact of the IAS 21 amendment on its consolidated financial statements, effective from January 1, 2025[138]. Cash Flow and Debt Management - Free cash flow for the year ended December 31, 2023, was $284.5 million, an increase of $201.0 million or 240.6% from $83.5 million in the previous year[19]. - As of December 31, 2023, the cash and cash equivalents were $716.6 million, with total financial debt of $1,824.0 million, resulting in net debt of $1,107.4 million[19]. - Net debt decreased from $1.4 billion at the end of 2022 to $1.1 billion by December 31, 2023, resulting in a net leverage ratio improvement to 1.53 times[27]. - The total liquidity amounted to $1,562.0 million, including cash and cash equivalents of $716.6 million and available borrowings of $845.4 million[11]. - The company issued new preferred credit facilities amounting to $1.5 billion, while settling past preferred credit facilities resulted in a cash outflow of $1.6 billion[70]. - The company has secured a new revolving credit facility with no outstanding amounts as of December 31, 2023[198]. Marketing and Investment - The marketing expenses increased by $85.5 million or 54.8% to $241.5 million for the year ended December 31, 2023, representing 6.6% of net sales[19]. - Capital expenditures increased to $110.1 million in 2023 from $62.8 million in 2022, aimed at expanding retail operations and investing in new product innovations[41]. - The company plans to increase marketing investment to approximately 7.0% of net sales in 2024 to support further growth[44]. Sustainability and Corporate Responsibility - The proportion of products made from recycled materials in net sales increased from approximately 23% in 2022 to about 34% in 2023[43]. - The company aims to continue increasing sales and profitability while striving to become the most sustainable fashion luggage and suitcase company globally[45]. Operational Efficiency - The company will continue to strictly limit promotional discounts to maintain improved gross margins[45]. - The focus will be on cash management to generate strong free cash flow, enhancing flexibility in capital allocation[45]. - The company will manage fixed SG&A expenses to achieve operational leverage and sustained profit growth[45]. Accounting and Financial Reporting - The company is committed to maintaining strong internal controls and governance to ensure the accuracy of its financial reporting[54]. - The group has consistently applied the significant accounting policy information as presented in the consolidated financial statements for all periods[85]. - The group recognizes financial assets and liabilities at the initial date of their occurrence[113]. - The group assesses uncertain tax treatments and recognizes tax reserves based on expected value and the most likely amount[128]. Future Outlook - The company anticipates strong growth in the global travel industry in 2024, with international tourism expected to fully recover to pre-pandemic levels[44]. - Management has expressed confidence in the company's ongoing viability and growth potential despite market challenges[60].