Group 1 - The core viewpoint of the article indicates that Samsonite (01910) has seen a stock price increase of over 6%, currently trading at HKD 16.26 with a transaction volume of HKD 51.0383 million [1] - The company plans to hold a board meeting on November 12 to consider and approve the quarterly performance report for the three and nine months ending September 30, 2025 [1] - According to a report from Daiwa, the expected revenue decline for Samsonite in Q3 is projected to narrow to 1.4% due to a low base effect, aligning with management's guidance [1] Group 2 - Daiwa anticipates an overall improvement in the performance of the Tumi brand, while American Tourister is expected to remain the weakest brand [1] - The firm believes that with sustained global travel demand, a stronger recovery is expected by 2026 [1]

Core Viewpoint - Samsonite (01910) shares rose over 6%, currently at HKD 16.26 with a trading volume of HKD 51.0383 million, indicating positive market sentiment ahead of the upcoming earnings report [1] Financial Performance - The board meeting is scheduled for November 12 to consider and approve the quarterly performance report for the three and nine months ending September 30, 2025 [1] - Daiwa's research indicates that due to a low base effect, Samsonite's third-quarter revenue decline is expected to narrow to 1.4%, aligning with management's guidance [1] Brand Performance - Expectations for Tumi's overall performance show improvement, while American Tourister remains the weakest brand [1] - The global travel demand is anticipated to support a stronger recovery in 2026 [1]

Core Viewpoint - Daiwa has adjusted Samsonite's (01910) earnings forecast for 2025 down by 2%, but raised the 2026 earnings forecast by 3% due to stronger recovery potential in the Asian and North American markets. The rating remains "Hold" due to a lack of catalysts and low visibility. However, a stronger recovery is expected in 2026 supported by global travel demand. The target price has been slightly increased from HKD 15 to HKD 16 [1][1][1] Group 1: Earnings Forecasts - The earnings forecast for 2025 has been reduced by 2% while the forecast for 2026 has been increased by 3% [1][1] - The expected revenue decline for Q3 is projected to narrow to 1.4%, aligning with management guidance [1][1] Group 2: Brand Performance - Tumi's overall performance is expected to improve, while American Tourister remains the weakest brand [1][1] - Adjusted EBITDA margin is anticipated to remain under pressure due to regional structural changes and operational deleveraging [1][1] Group 3: Market Insights - The gross margin and adjusted EBITDA margin are expected to decline by 0.7 and 0.6 percentage points year-on-year, reaching 58.6% and 17% respectively [1][1] - There is cautious optimism regarding the turnaround of the Indian business in 2026, as major competitors have undergone significant restructuring, potentially leading to more rational market competition [1][1] - The dual listing plan in the U.S. is believed to be progressing, but may not materialize until mid-2026 at the earliest [1][1]

Investment Rating - The report does not specify a clear investment rating for Samsonite, but it discusses the company's performance and outlook in detail, indicating a cautious but optimistic long-term view from management [5][12]. Core Insights - Samsonite's revenue and profit declined in 1H25, with net sales at USD 1.662 billion, down 6.0% YoY, primarily due to weak demand in North America and Asia [2][8]. - Gross profit was USD 984 million, with a gross margin of 59.2%, down 1.0 percentage point YoY, affected by lower sales from higher-margin regions and increased promotions [2][8]. - Adjusted EBITDA decreased by 19.4% YoY to USD 269 million, with an adjusted EBITDA margin of 16.2% [2][8]. - Management remains optimistic about long-term consumption demand despite short-term pressures from trade policy changes and macroeconomic uncertainties [11][12]. Summary by Sections Financial Performance - In 1H25, net sales were USD 1.662 billion, down 6.0% YoY, with gross profit at USD 984 million, down 7.6% YoY, and adjusted net profit at USD 123 million, down 29.1% YoY [2][8]. - The adjusted free cash flow was USD 11.5 million, a decrease of USD 70 million YoY, with net debt increasing to USD 1.162 billion [2][8]. Regional Performance - Revenue in Asia was USD 626 million, down 7.3% YoY, with significant declines in China, South Korea, and Hong Kong [3][9]. - North America saw revenue of USD 561 million, down 7.7% YoY, with all brands declining, particularly American Tourister [3][9]. - Europe experienced modest growth, with revenue at USD 379 million, up 1.6% YoY, driven by strong performance in Germany [3][9]. Channel Performance - The DTC channel share rose to 39.6%, with e-commerce accounting for 11.3% and offline retail at 28.3% [4][10]. - Wholesale revenue fell 7.4% YoY, primarily due to cautious procurement by wholesale customers amid economic uncertainty [4][10]. Strategic Initiatives - The company is addressing tariff impacts through price increases and supplier negotiations, aiming to offset negative effects in North America [5][11]. - Management plans to enhance brand competitiveness through product innovation and expansion of the Tumi brand [5][11]. Management Outlook - Management expects improvement in the Chinese and Indian markets in the second half of 2025, with a generally stronger performance in the second half compared to the first [12].

Core Viewpoint - Samsonite reported a decline in both revenue and net profit for Q1 2025, leading to a significant drop in stock price and market capitalization [1][3][11]. Financial Performance - The company's Q1 2025 sales revenue was $797 million, down 7.3% from $860 million in Q1 2024 [4][6]. - Net profit for Q1 2025 was $48.2 million, a decrease of 42.6% compared to $83.9 million in the same period last year [4][6]. - Operating profit fell to $110 million, down 26.9% year-over-year [4][6]. - Adjusted net income was $52 million, a reduction of 40.3% from $87 million in Q1 2024 [4][6]. - Gross margin decreased to 59.4%, down 1 percentage point from the previous year [4][6]. Cash Flow - Operating cash flow dropped significantly from $55 million to $8.5 million [5]. - Free cash flow turned negative at -$41.2 million [5]. Regional Sales Performance - Sales in Asia decreased by 9.7%, with a 7.0% decline when adjusted for constant currency, primarily due to macroeconomic uncertainties [6][8]. - North American sales fell by 8.3%, with a similar decline of 8.0% in constant currency, attributed to decreased consumer confidence [7][10]. - European sales remained flat, but grew by 4.4% in constant currency, driven by sales growth in the American Tourister and TUMI brands [8][10]. - Latin American sales declined by 10.3%, with constant currency sales remaining flat, influenced by reduced consumer confidence in Mexico [9][10]. Market Reaction - Following the earnings report, the company's stock price dropped nearly 10%, closing at 14 HKD, with a market capitalization of less than 20 billion HKD [1][11]. - Year-to-date, the stock has fallen over 35% [1]. Institutional Holdings - The company was previously a significant holding in the E Fund managed by Zhang Kun, but has since been reduced in the fund's top holdings [12][14]. - In the latest reports, Samsonite did not appear in the top ten holdings of the fund [11][14]. Analyst Ratings - Multiple financial institutions have downgraded their target prices for Samsonite, with estimates ranging from 16.3 HKD to 25.35 HKD [16][17]. - Goldman Sachs lowered its target price to 22 HKD and revised down its earnings forecast for the year [17].

Core Viewpoint - Samsonite reported a decline in financial performance for the three months ending March 31, 2025, with net sales decreasing by 7.3% year-on-year, primarily due to a drop in sales from the Asia region [2][6]. Financial Performance Summary - Net sales for the period were $796.6 million, down from $859.6 million in the same period of 2024, representing a decrease of 7.3% (4.5% decline on a constant currency basis) [2][6]. - Gross profit was $473.1 million, with a gross margin of 59.4%, down from 60.4% year-on-year, attributed to changes in the sales mix [2][6]. - Operating profit was reported at $109.5 million, a decrease of 26.9% compared to the previous year [2][6]. - Net profit for the period was $55.2 million, down 39.7% from $91.5 million in 2024 [2][6]. - Adjusted net income was $52.0 million, reflecting a 40.3% decrease year-on-year [2][6]. - Profit attributable to equity holders was $48.2 million, a decline of 42.6% compared to the same period last year [3][6]. Sales Performance Factors - The decline in net sales was influenced by reduced sales in Asia, decreased consumer confidence in North America, and timing changes in wholesale channel sales that negatively impacted the first quarter of 2025 [2][6]. - However, this decline was partially offset by growth in sales from the American Tourister and TUMI brands in Europe [2][6]. Market Reaction - As of the report date, Samsonite's stock was trading at HKD 14.14, reflecting a decline of 8.06%, with a market capitalization of HKD 20.678 billion [7].

Financial Data and Key Metrics Changes - Sales for Q1 were approximately $797 million, representing a decrease of 4.5% compared to the previous year [9][48] - Gross margin decreased slightly to 59.4% from 60.4% in the prior year [12][49] - Adjusted EBITDA was $128 million with an EBITDA margin of 16%, down from a record Q1 of the previous year [13][49] - Adjusted net income was $52 million, down from $87 million in the previous year [50] Business Line Data and Key Metrics Changes - Samsonite brand sales decreased by 2.6% when adjusted for a wholesale customer pulling orders into Q4 [11][23] - Tumi sales were down 2%, but showed growth in regions outside North America [11][23] - American Tourister sales decreased by nearly 11%, impacted by cautious buying from wholesale customers [11][23] Market Data and Key Metrics Changes - North America sales were down 8%, with a slight adjustment indicating a 5% decrease when accounting for order pull-ins [15][20] - Asia sales decreased by 7%, with a noted improvement expected in Q2 [14][17] - Europe experienced growth of 4.4% in Q1, with expectations for continued strong performance [16][22] - Latin America was flat in Q1 but is expected to return to double-digit growth in Q2 [17][22] Company Strategy and Development Direction - The company is focused on profitable, sustainable growth while maintaining cost discipline and strategic investments [8][76] - There is a strong emphasis on product innovation and development, particularly in the non-travel segment, which now accounts for 34% of sales [37][63] - The company is navigating tariff impacts by diversifying sourcing and implementing price adjustments [29][55] Management's Comments on Operating Environment and Future Outlook - Management noted a macroeconomic environment with softened consumer sentiment, particularly in North America [3][5] - Travel demand is expected to remain robust, with a projected growth of 4% to 5% for the year [6][40] - The company anticipates a similar performance in Q2 compared to Q1, with slight improvements in certain regions [70][72] Other Important Information - The company has opened 64 net new stores in the past year, maintaining flat SG&A expenses [12][56] - There is a focus on maintaining a strong balance sheet, with net debt at approximately $1.2 billion and liquidity of nearly $1.4 billion [60][66] - The company is preparing for a potential dual listing, monitoring market conditions closely [79][80] Q&A Session Summary Question: Clarification on Q2 performance expectations - Management indicated that Q2 is expected to be similar to Q1, with slight improvements in Asia and Latin America [84][86] Question: Correlation between travel trends and sales growth - Management confirmed that travel trends are expected to remain correlated with sales growth, despite current consumer sentiment challenges [87][88] Question: Pricing strategies in response to tariffs - Management stated that pricing actions are being taken to offset tariff impacts, primarily focused on the U.S. market [90][91]

Financial Data and Key Metrics Changes - The company reported Q1 sales of approximately $797 million, a decrease of 4.5% compared to the previous year, which was a record Q1 for the business [9][49] - Gross margin for Q1 was 59.4%, down from 60.4% in the previous year, attributed to a geographic mix with lower sales in higher-margin regions [12][49] - Adjusted EBITDA for Q1 was $128 million, with an EBITDA margin of 16%, down from the record number in Q1 of the previous year [13][49] - Adjusted net income for Q1 was $52 million, compared to $87 million in the previous year [49] Business Line Data and Key Metrics Changes - The largest core brands, Samsonite and Tumi, experienced declines of 2.6% and 2% respectively, while American Tourister saw a decline of nearly 11% due to softer consumer sentiment [11][22] - Non-travel sales accounted for 34% of total sales, showing growth opportunities in this underpenetrated market [37] Market Data and Key Metrics Changes - North America sales were down 8% in Q1, with a slight adjustment indicating a 5% decline when accounting for a wholesale customer pulling orders [15][19] - Europe showed strong growth of 4.4% in Q1, with expectations for continued growth in Q2 [16][21] - Latin America was flat in Q1 but is expected to return to double-digit growth in Q2 [17][21] - Asia saw a decline of 7% in Q1, with some markets like India showing positive growth, while South Korea faced significant challenges [14][18] Company Strategy and Development Direction - The company is focused on profitable, sustainable growth while maintaining cost discipline and strategic investments for long-term growth [8][78] - There is a strong emphasis on product innovation and development, with new collections launching in Q2 and Q3 [41][46] - The company is taking decisive actions to mitigate the impact of tariffs, including diversifying sourcing and implementing price increases [27][29] Management's Comments on Operating Environment and Future Outlook - Management noted that while consumer sentiment is softening, travel remains a priority for consumer spending, with a projected growth of 4% to 5% in travel for the year [6][67] - The macroeconomic environment remains uncertain, but the company is confident in its ability to navigate challenges and expects to come out stronger post-tariff adjustments [4][68] - The outlook for Q2 is expected to be similar to Q1, with potential slight improvements in certain markets [70][72] Other Important Information - The company is closely monitoring the dual listing preparations amid current market uncertainties [79] - The company maintains a healthy balance sheet with net debt of approximately $1.2 billion and liquidity of nearly $1.4 billion [58][64] Q&A Session Summary Question: Clarification on Q2 trading and travel trends correlation - Management indicated that Q2 is expected to be similar to Q1, with slight improvements in Asia and Latin America returning to trend [86][87] - The correlation between travel trends and sales growth is expected to remain strong, with potential benefits in the back half of the year [88][89] Question: Pricing strategies and impacts - Management is taking actions to offset tariff impacts through pricing adjustments, primarily in the U.S., but not providing specific numbers at this time [91][92]