Financial Data and Key Metrics Changes - The company reported a net sales decline of 1.3% for Q3, an improvement from a 5.2% decline in the first half of the year [38][39] - Gross margin for Q3 was 59.6%, up 30 basis points year-over-year and 60 basis points from the previous quarter [6][45] - Adjusted EBITDA for the quarter was $143 million, with an adjusted EBITDA margin of 16.3% [39][46] - Adjusted net income was reported at $64 million [39] Business Line Data and Key Metrics Changes - Direct-to-consumer (D2C) sales increased by 3.5% period over period, with D2C e-commerce up over 10% [4][5] - Non-travel sales grew almost 7% in Q3, representing a significant opportunity for the company [6][50] - Wholesale channel net sales declined by 4.5%, with traditional brick-and-mortar sales down around 7% [5][40] Market Data and Key Metrics Changes - North America saw a net sales decline of 10%, although TUMI brand improved by 3.3% in Q3 [11][42] - Asia's net sales were roughly flat, with TUMI showing a 7.1% increase in Q3 [40][42] - Europe reported a 1% increase in sales, while Latin America grew by 1.2% [40][44] Company Strategy and Development Direction - The company is focused on capitalizing on growth in travel and expanding its non-travel business, which has shown a 14% CAGR from 2020 to 2025 [10][26] - There is a strong emphasis on product innovation and enhancing brand awareness across all brands [18][19] - The company plans to complete a dual listing in the U.S. by 2026 to enhance shareholder value [61][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in medium and long-term sales growth despite current macroeconomic uncertainties [57] - Positive trends in consumer demand for travel are expected to continue, with strong product launches anticipated for Q4 [57][58] - The company is well-positioned to maintain strong gross margins due to effective tariff mitigation strategies [59][60] Other Important Information - The company has successfully refinanced its corporate debt, extending maturities and improving liquidity [53][54] - The DTC sales mix has increased to 42%, with e-commerce channels growing significantly [49][50] - The company has opened 43 net new stores over the past year, impacting G&A expenses [46] Q&A Session Summary Question: Can you provide insights on the performance of TUMI in North America? - TUMI showed a positive growth of 3.3% in Q3, a significant improvement from a decline of 3.3% in Q2 [42] Question: What are the expectations for the non-travel segment? - The non-travel segment is expected to continue growing, with a reported 6.7% growth in Q3 and representing 35.6% of total sales [50][51] Question: How is the company managing its cost structure amid current challenges? - The company has maintained a disciplined approach to managing its cost structure, with gross margins remaining strong despite tariff impacts [45][46]

Q3 2025 RESULTS NOVEMBER 12, 2025 Samsonite Group S.A. Stock Code: 1910 DISCLOSURE STATEMENT This presentation and the accompanying slides (the "Presentation"), which have been prepared by Samsonite Group S.A. ("Samsonite" or the "Company"), do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for, or be relied on in connection with, any contract or binding commitment whatsoever. This Presentation has been prepared by the Company based on inform ...

Group 1 - The peak season for luggage sales has arrived in Yiwu International Trade City due to the back-to-school period, with merchants launching various multifunctional new luggage products to meet student needs [1][3] - Recent statistics indicate that luggage sales in Yiwu International Trade City have increased by over 30% year-on-year, driven by the influx of students preparing for university [3][5] - Daily foot traffic in the luggage area of Yiwu International Trade City has grown by over 40% compared to regular days, prompting merchants to stock up and increase staff to ensure market supply during the back-to-school season [7] Group 2 - Merchants in Yiwu International Trade City are catering to nationwide demand, with significant purchases from regions like Shandong, and selling around 100 units daily, leading to factories operating at full capacity [5] - New luggage designs have been upgraded in both appearance and functionality, with features such as cup holders, customs locks, and moisture-proof bags being particularly popular among students [5]

Financial Data and Key Metrics Changes - The company reported net sales of $1,662 million for the first half, a decrease of 5.2% compared to the previous year, but still up 24.4% compared to pre-pandemic levels in the first half of 2019 [16][18][19] - Gross margin remained robust at 59.2%, slightly down from 60% in the previous year, primarily due to a mix effect and strategic promotional initiatives [11][19] - Adjusted EBITDA margin was 16.2%, reflecting a decrease from 19% in the prior year, influenced by lower gross margin and higher SG&A expenses [49][56] Business Line Data and Key Metrics Changes - The wholesale channel experienced a decline of 7.4% in the first half, while the direct-to-consumer (DTC) channel only declined by 1.6%, indicating stronger resilience in consumer demand through direct channels [6][19] - Non-travel categories showed constant currency growth, with non-travel sales up 180 basis points to 36.2% compared to the prior year [9][26] Market Data and Key Metrics Changes - North America sales were down 7.3%, showing improvement from a 8% decline in Q1, while Asia saw a decline of 7.6% [50][51] - Europe experienced a slight decline of about 1% in Q2, with specific markets like France and the UK showing weakness [54] Company Strategy and Development Direction - The company is focusing on profitable growth and brand positioning, avoiding competition with low-priced unbranded products to protect profitability [8] - Strategic investments in the DTC channel are yielding positive results, with DTC now accounting for 40% of net sales, up from 38% last year [9][23] - The company is committed to product innovation and expanding its market presence, particularly in underpenetrated categories and regions [12][34] Management's Comments on Operating Environment and Future Outlook - Management noted that while travel demand remains strong, there is a softening in consumer sentiment due to macroeconomic uncertainties and trade policy shifts [6][70] - The company anticipates sequential improvement in net sales for the back half of the year, although consumer sentiment remains difficult to predict [70][72] Other Important Information - The company has added 57 net new stores since June 2024, with distribution and G&A expenses up less than 1% compared to the prior year [10][60] - The company is preparing for a dual listing of its securities in the United States, monitoring market conditions closely [73] Q&A Session Summary Question: Updates on full year guidance and strategy for American Tourister - Management sees sequential improvement in the back half of the year but refrains from providing specific Q4 guidance due to uncertainty [79] - For American Tourister, the strategy involves disciplined management and leveraging collaborations to draw consumers into the brand while navigating competitive pressures [82][84] Question: Details on tariff impacts and inventory management - Management indicated that a combination of price increases, supplier negotiations, and forward inventory purchases will help neutralize tariff impacts on gross margin [91] - Inventory levels have increased intentionally to prepare for future sales, with expectations of working capital returning to historical levels [93]

Financial Data and Key Metrics Changes - The company reported net sales of $1,662 million for the first half, a decrease of 5.2% compared to the previous year, but still up 24.4% compared to pre-pandemic levels in the first half of 2019 [16][18][54] - Gross margin remained robust at 59.2%, slightly down from 60% in the same period last year, primarily due to a mix effect and strategic promotional initiatives [11][54] - Adjusted EBITDA margin was 16.2%, reflecting a decrease from 19% last year, attributed to lower gross margin and higher SG&A expenses [47][54] Business Line Data and Key Metrics Changes - The wholesale channel experienced a decline of 7.4% in the first half, while the direct-to-consumer (DTC) channel only declined by 1.6%, indicating stronger resilience in consumer demand through direct channels [6][19] - Non-travel categories showed constant currency growth, now representing 36.2% of net sales, up 180 basis points from the previous year [10][24] - The American Tourister brand faced a significant decline of 12.7%, while the Samsonite brand was down 4.7%, with Tumi showing a modest decline of 2.5% [25][27] Market Data and Key Metrics Changes - North America sales were down 7.3%, with Asia down 7.6%, while Europe showed a slight decline of about 1% [49][50] - Latin America remained flat in Q1 and down 2.2% in Q2, driven by consumer sentiment issues in Mexico and Brazil [53][54] - The company noted a softening in travel demand in key markets, particularly in North America, influenced by macroeconomic uncertainties [6][70] Company Strategy and Development Direction - The company is focused on profitable growth and brand positioning, consciously avoiding competition with low-priced unbranded products to protect profitability [7][10] - Strategic investments in the DTC channel are yielding positive results, with DTC now accounting for 40% of net sales, up from 38% last year [8][23] - The company is committed to product innovation and expanding its market reach, particularly in underpenetrated categories and regions [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite current macroeconomic challenges, indicating that travel demand remains a priority for consumers [70][71] - The company anticipates sequential improvement in net sales for the second half of the year, although consumer sentiment remains uncertain [68][70] - Ongoing investments in new products and brand elevation are seen as critical for maintaining a robust margin profile [70][71] Other Important Information - The company added 57 net new stores since June 2024, while managing distribution and G&A expenses to remain up less than 1% compared to the prior year [10][60] - The company is preparing for a dual listing of its securities in the United States, closely monitoring market conditions for the right timing [71][72] Q&A Session Summary Question: Can you provide updates on full year guidance and strategy for American Tourister? - Management indicated that while there are signs of improvement in the third quarter, full year guidance remains uncertain due to macroeconomic factors. The strategy for American Tourister involves disciplined management and targeted promotions to draw consumers up from lower-end competition [76][80][82] Question: What details can you share regarding tariffs and inventory management? - Management confirmed that efforts are being made to neutralize the impact of tariffs through a combination of price increases and inventory management. The increase in inventory is intentional to prepare for future sales, and free cash flow is expected to improve as inventory levels normalize [87][90][92]

Financial Performance - 1H 2025 net sales were US$1,662 million, a decrease of 5.2% compared to 1H 2024, but still up 24.4% compared to pre-pandemic 1H 2019[29] - Wholesale channel net sales were down 7.4%, while the DTC channel was down only 1.6% in 1H 2025[29] - Gross margin for 1H 2025 was 59.2%, a decrease of 100 basis points from 1H 2024, but still up 320 basis points compared to 1H 2019[29] - Adjusted EBITDA for 1H 2025 was US$269 million, representing an adjusted EBITDA margin of 16.2%, which was 400 basis points higher than 1H 2019[29] - Q2 2025 net sales decreased by 5.8% from Q2 2024[74] Channel and Category Diversification - DTC mix in 1H 2025 was approximately 40% of net sales, an increase from approximately 38% in the same period last year[34] - Non-travel net sales penetration increased by approximately 180 basis points to 36.2% in 1H 2025 compared to the prior year[34] Brand Performance - TUMI grew 18.6% and 6.2% in Latin America and Europe, respectively, but declined 2.5% in Asia and 4.7% in North America[38] - Gregory brand had strong growth of 14.7% in 1H 2025[44] Financial Position - Combined 1H 2025 distribution and G&A expenses of US$644 million were up just 0.8% compared to 1H 2024[93] - Net debt position was US$1,162 million as of June 30, 2025, with a calculated total net leverage ratio of 1.85x[93] - Liquidity of approximately US$1.4 billion as of June 30, 2025, including cash of US$669 million[93]