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 US7.7 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 US164.3 million, aided by a reduction in net finance costs [8][42]. Sales Performance by Region - Net sales in Asia decreased by 2.0% to US608.3 million. Europe recorded a 4.6% increase to US107.5 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].
Samsonite International S.A. Announces Results for the Six Months Ended June 30, 2024