Investment Rating - The report maintains a "Buy" rating for the company [2][19] Core Insights - The company experienced a positive revenue growth in Q4 2025, with a revenue of $963 million, reflecting a year-on-year increase of 0.9% on a currency-neutral basis [3][9] - The company expects sales net revenue to remain flat year-on-year in Q1 2026 due to the impact of the Middle East conflict, but anticipates potential positive growth in subsequent quarters [3][9] Financial Summary - Total revenue projections for the company are as follows: - 2024A: $3,589 million - 2025A: $3,498 million - 2026E: $3,559 million - 2027E: $3,725 million - 2028E: $3,901 million - The company’s net profit is projected to be: - 2024A: $346 million - 2025A: $289 million - 2026E: $294 million - 2027E: $321 million - 2028E: $347 million - The company’s PE ratio is expected to decrease from 11.75 in 2024A to 8.11 in 2028E [5][11] Regional Performance - In Q4 2025, the Asia region showed strong growth with a year-on-year revenue increase of 5.1%, while North America experienced a decline of 2.8%, which improved to a growth of 8.2% when excluding Mexico [9][11] - The company’s brand performance in Q4 2025 showed TUMI achieving stable growth, while Samsonite and American Tourister improved their growth rates compared to Q3 [9][11] Future Outlook - The company plans to continue investing in product innovation and marketing to strengthen its competitive advantage [9][11] - The international complex situation will need to be monitored closely as it may impact future sales [3][9]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company reported a revenue of $3.6 billion in Q1 2025, a year-on-year decrease of 7.3%, primarily due to weakened demand in Asia and North America [1] - Adjusted EBITDA profit was $130 million, down 20.8% year-on-year, and net profit attributable to shareholders was $48.2 million, down 41.9% year-on-year, indicating profit pressure under negative operating leverage [1] - The company anticipates revenues of $3.6 billion, $3.7 billion, and $3.9 billion for 2025, 2026, and 2027 respectively, with net profits of $300 million, $347.8 million, and $397.2 million, reflecting a temporary performance pressure due to tariff policies and macroeconomic fluctuations [5] Regional Performance - In Q1 2025, revenue from Asia was $310 million, down 9.7% year-on-year, while North America generated $260 million, down 8.3% year-on-year. Europe, however, showed resilience with revenue of $180 million, flat year-on-year, and a 4.4% increase in fixed exchange rates [2] - The Indian market benefited from strategic adjustments, showing a fixed exchange rate revenue increase of 2.6%, while South Korea and China faced declines due to overall demand weakness [2] Brand Performance - Revenue by brand in Q1 2025 was $410 million for Samsonite, $190 million for TUMI, and $130 million for American Tourister, with TUMI showing relative resilience with a year-on-year decline of only 3.7% [3] - The company opened 9 new stores, bringing the total to 1,128, demonstrating confidence in growth despite a weakening retail environment [3] Profitability and Cost Structure - Gross margin for Q1 2025 was 59.4%, a decrease of 1.1 percentage points year-on-year, primarily due to a lower proportion of high-margin sales from Asia [4] - The adjusted EBITDA margin was 16.0%, down 2.7 percentage points year-on-year, indicating pressure on profitability due to rising expense ratios [4] Financial Forecast and Valuation - The report projects a P/E ratio of 9, 8, and 7 for the years 2025, 2026, and 2027 respectively, reflecting the company's valuation amidst current market conditions [5] - The anticipated net profit for 2025 is $300 million, representing a 13.1% decline from the previous year, but expected to recover with a 15.8% increase in 2026 [11]