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].
新秀丽(01910) - 2020 - 中期财报