Samsonite Group S.A. Announces Results for the First Quarter Ended March 31, 2025
Regional performance varied with Europe showing resilience (+4.4% constant currency), while North America declined 8.0% due to softer consumer confidence. Asia saw a 7.0% decrease, while Latin America remained flat. The TUMI brand showed strength in Europe (+11.1%), Latin America (+15.7%), and China (+10.9%), though overall TUMI sales decreased 2.0%.
The company continued its shareholder returns, repurchasing 16.7 million shares worth US$42.9 million. Samsonite maintains substantial liquidity of US$1.3 billion while managing tariff challenges by reducing Chinese sourcing for U.S. products from 85% in 2018 to approximately 15% in 2024.
Le performance regionali sono state diverse, con l'Europa che ha mostrato resilienza (+4,4% a valuta costante), mentre il Nord America è diminuito dell'8,0% a causa di una minore fiducia dei consumatori. L'Asia ha registrato una diminuzione del 7,0%, mentre l'America Latina è rimasta stabile. Il marchio TUMI ha mostrato forza in Europa (+11,1%), America Latina (+15,7%) e Cina (+10,9%), anche se le vendite complessive di TUMI sono diminuite del 2,0%.
L'azienda ha proseguito con le restituzioni agli azionisti, riacquistando 16,7 milioni di azioni per un valore di 42,9 milioni di dollari. Samsonite mantiene una liquidità sostanziale di 1,3 miliardi di dollari, gestendo le sfide tariffarie riducendo l'approvvigionamento dalla Cina per i prodotti destinati agli Stati Uniti dall'85% nel 2018 a circa il 15% nel 2024.
El desempeño regional varió, con Europa mostrando resiliencia (+4,4% a moneda constante), mientras que Norteamérica cayó un 8,0% debido a una menor confianza del consumidor. Asia registró una disminución del 7,0%, mientras que América Latina se mantuvo estable. La marca TUMI mostró fortaleza en Europa (+11,1%), América Latina (+15,7%) y China (+10,9%), aunque las ventas totales de TUMI disminuyeron un 2,0%.
La compañía continuó sus retornos a accionistas, recomprando 16,7 millones de acciones por un valor de 42,9 millones de dólares. Samsonite mantiene una liquidez sustancial de 1,3 mil millones de dólares mientras gestiona los desafíos arancelarios reduciendo la dependencia de abastecimiento chino para productos de EE.UU. del 85% en 2018 a aproximadamente el 15% en 2024.
지역별 실적은 유럽이 견조한 성장(+4.4% 환율 고정 기준)을 보인 반면, 북미는 소비자 신뢰 약화로 8.0% 감소했습니다. 아시아는 7.0% 하락했으며, 라틴아메리카는 변동이 없었습니다. TUMI 브랜드는 유럽(+11.1%), 라틴아메리카(+15.7%), 중국(+10.9%)에서 강세를 보였으나, 전체 TUMI 매출은 2.0% 감소했습니다.
회사는 주주 환원을 지속하며 4,290만 달러 규모의 1,670만 주 자사주를 매입했습니다. 삼소나이트는 13억 달러의 충분한 유동성을 유지하며, 2018년 85%였던 미국 제품의 중국 소싱 비중을 2024년 약 15%로 줄여 관세 문제에 대응하고 있습니다.
Les performances régionales ont varié, l'Europe montrant une résilience (+4,4 % à taux de change constants), tandis que l'Amérique du Nord a reculé de 8,0 % en raison d'une confiance des consommateurs plus faible. L'Asie a enregistré une baisse de 7,0 %, tandis que l'Amérique latine est restée stable. La marque TUMI a montré une bonne dynamique en Europe (+11,1 %), en Amérique latine (+15,7 %) et en Chine (+10,9 %), bien que les ventes globales de TUMI aient diminué de 2,0 %.
L'entreprise a poursuivi ses retours aux actionnaires en rachatant 16,7 millions d'actions pour une valeur de 42,9 millions de dollars. Samsonite maintient une liquidité importante de 1,3 milliard de dollars tout en gérant les défis tarifaires en réduisant l'approvisionnement en provenance de Chine pour les produits destinés aux États-Unis, passant de 85 % en 2018 à environ 15 % en 2024.
Die regionale Entwicklung war unterschiedlich, wobei Europa mit +4,4 % bei konstanten Wechselkursen Widerstandskraft zeigte, während Nordamerika aufgrund einer geringeren Verbrauchervertrauens um 8,0 % zurückging. Asien verzeichnete einen Rückgang von 7,0 %, während Lateinamerika stabil blieb. Die TUMI-Marke zeigte Stärke in Europa (+11,1 %), Lateinamerika (+15,7 %) und China (+10,9 %), obwohl die Gesamtverkäufe von TUMI um 2,0 % zurückgingen.
Das Unternehmen setzte seine Aktionärsrückgaben fort und kaufte 16,7 Millionen Aktien im Wert von 42,9 Millionen US-Dollar zurück. Samsonite hält eine erhebliche Liquidität von 1,3 Milliarden US-Dollar und bewältigt tarifliche Herausforderungen durch die Reduzierung der chinesischen Beschaffung für US-Produkte von 85 % im Jahr 2018 auf etwa 15 % im Jahr 2024.
- Strong gross profit margin maintained at 59.4%
- Substantial liquidity position of US$1.3 billion
- TUMI brand showing strong growth in Europe (+11.1%), Latin America (+15.7%), and China (+10.9%)
- Successful reduction of Chinese sourcing for U.S. products from 85% to 15%
- Continued shareholder returns through $42.9M share repurchases
- European market showing resilience with 4.4% growth
- Overall net sales declined 7.3% (4.5% constant currency) to $796.6M
- Adjusted EBITDA margin decreased to 16.0% from 18.8% year-over-year
- North American sales declined 8.0% due to softening consumer confidence
- Negative adjusted free cash flow of $41.2M compared to positive $6.5M in prior year
- Net debt increased to $1.2B from $1.1B year-over-year
Consolidated net sales were
Achieved gross profit margin of
Returned
Maintained substantial liquidity3 of
Unless otherwise stated, all net sales percentage increases/decreases are presented on a constant currency basis1.
Overview
Commenting on the results, Mr. Kyle Gendreau, Chief Executive Officer, said, "We reported net sales in line with our outlook, and I am gratified by the resilience demonstrated by our teams across the globe in a challenging environment. Macroeconomic uncertainty has risen considerably worldwide, exacerbated by a lack of visibility with respect to tariffs in
"During the first quarter of 2025, despite softened consumer confidence which impacted demand, our largest core brands Samsonite and TUMI performed relatively well on an underlying basis. Furthermore, our gross profit margin remained strong while combined distribution and general and administrative expenses were roughly flat period-over-period, notwithstanding the addition of 62 net new company-operated retail stores since March 31, 2024."
"We continued to invest in the TUMI brand's global expansion, achieving period-over-period net sales gains of
"For the three months ended March 31, 2025, net sales of the Samsonite brand decreased by
"Our global footprint allows us to continue delivering net sales growth in certain geographies while navigating challenging business conditions in others. Although softer consumer sentiment had some impact on our business in the first quarter of 2025, particularly in
"We continued to invest in our direct-to-consumer ("DTC") business, adding nine net new company-operated retail stores in the first quarter of 2025 as well as continuing to enhance our DTC e-commerce presence. Excluding
"We took swift actions to mitigate the impact of lower net sales during the first quarter of 2025, leveraging the Company's decentralized and disciplined approach to managing the business. We adjusted advertising investments to appropriate levels considering slower retail traffic and softening global consumer sentiment, and we closely controlled distribution and general and administrative expenses to be essentially flat period-over-period. For the three months ended March 31, 2025, the Company's gross profit margin remained strong at
Adjusted free cash flow4 for the three months ended March 31, 2025, was negative
During the three months ended March 31, 2025, the Company repurchased 16.7 million shares with an associated cash outflow of
Mr. Gendreau continued, "In the
"The Company's period-over-period constant currency1 net sales performance during the first quarter of 2025 was in line with our outlook, and the second quarter of 2025 faces an easier prior year comparison than the first quarter. However, significant uncertainty in the macroeconomic environment has softened consumer demand, and we anticipate this will continue in the coming months. Net sales performance for the second quarter of 2025 is expected to be similar to the first quarter, down in the [mid-single] digit range on a constant currency basis1 compared to the second quarter of 2024."
"Because of the ongoing uncertainties with respect to
"Notwithstanding the current unsettled political and economic environment, we are confident in our long-term growth outlook. Our business correlates highly with travel, which remains a priority for consumer spending and is expected to grow both in the near-term and long-term. Additionally, we enjoy strong long-term growth prospects in the non-travel8 product category, where we are currently under-penetrated. Our ongoing investments in new and exciting products, brand elevation, and channel and product category expansion will strengthen our business, and our focus on maintaining a robust margin profile is supported by disciplined expense management. We will continue to leverage our asset-light business model and will invest in growth, return cash to our shareholders, and deleverage our balance sheet going forward."
Mr. Gendreau concluded, "Preparations for a dual listing of the Company's securities in
Table 1: Key Financial Highlights for the First Quarter Ended March 31, 2025
Expressed in US$ millions, except per share data | Three months ended | Three months ended as adjusted9 | Percentage increase (decrease) |
Net sales | 796.6 | 859.6 | (7.3) % |
Gross profit | 473.1 | 519.5 | (8.9) % |
Gross profit margin | 59.4 % | 60.4 % | |
Operating profit | 109.5 | 149.8 | (26.9) % |
Profit for the period9 | 55.2 | 91.5 | (39.7) % |
Profit attributable to the equity holders9 | 48.2 | 83.9 | (42.6) % |
Adjusted net income10 | 52.0 | 87.1 | (40.3) % |
Adjusted EBITDA5 | 127.6 | 161.2 | (20.9) % |
Adjusted EBITDA margin2 | 16.0 % | 18.8 % | |
Basic earnings per share9 – Expressed in US$ per share | 0.035 | 0.058 | (40.2) % |
Diluted earnings per share9 – Expressed in US$ per share | 0.034 | 0.057 | (40.0) % |
Adjusted basic earnings per share11 – Expressed in US$ per share | 0.037 | 0.060 | (37.8) % |
Adjusted diluted earnings per share11 – Expressed in US$ per share | 0.037 | 0.059 | (37.7) % |
Results for the First Quarter Ended March 31, 2025
The Company's performance for the three months ended March 31, 2025, is discussed in greater detail below. Unless otherwise stated, all net sales percentage increases/decreases are presented on a constant currency basis1.
Net Sales
For the three months ended March 31, 2025, the Company recorded net sales of
Net Sales Performance by Region
Table 2: Net Sales by Region
Region12 | Three months ended March 31, 2025 US$ millions | Three months ended March 31, 2024 US$ millions | Percentage increase (decrease) 2025 vs. 2024 | Percentage Increase (decrease) 2025 vs. 2024 excl. foreign currency effects1 |
307.0 | 340.1 | (9.7) % | (7.0) % | |
261.5 | 285.3 | (8.3) % | (8.0) % | |
175.5 | 175.5 | 0.0 % | 4.4 % | |
52.5 | 58.5 | (10.3) % | 0.0 % | |
Corporate | 0.2 | 0.2 | (25.4) % | (25.4) % |
Net sales | 796.6 | 859.6 | (7.3) % | (4.5) % |
During the three months ended March 31, 2025, the Company's net sales in
During the three months ended March 31, 2025, net sales in
For the three months ended March 31, 2025, the Company's net sales in
During the first quarter of 2025, net sales in
For the three months ended March 31, 2025, net sales in
For the three months ended March 31, 2025, net sales in
After multiple quarters of consistent double-digit net sales1 growth, net sales in
Net Sales Performance by Brand
Table 3: Net Sales by Brand
Brand | Three months ended March 31, 2025 US$ millions | Three months ended March 31, 2024 US$ millions | Percentage increase (decrease) 2025 vs. 2024 | Percentage Increase (decrease) 2025 vs. 2024 excl. foreign currency effects1 |
Samsonite | 407.4 | 439.8 | (7.4) % | (4.5) % |
TUMI | 186.9 | 194.0 | (3.7) % | (2.0) % |
American Tourister | 129.9 | 151.1 | (14.0) % | (10.8) % |
Other13 | 72.5 | 74.8 | (3.0) % | 1.3 % |
Net sales | 796.6 | 859.6 | (7.3) % | (4.5) % |
For the three months ended March 31, 2025, net sales of the Samsonite brand decreased by
For the three months ended March 31, 2025, net sales of the TUMI brand decreased by
For the three months ended March 31, 2025, net sales of the American Tourister brand decreased by
Net Sales Performance by Product Category
Table 4: Net Sales by Product Category
Product Category | Three months ended March 31, 2025 US$ millions | Three months ended March 31, 2024 US$ millions | Percentage increase (decrease) 2025 vs. 2024 | Percentage Increase (decrease) 2025 vs. 2024 excl. foreign currency effects1 |
Travel | 509.9 | 558.3 | (8.7) % | (6.1) % |
Non-travel8 | 286.8 | 301.3 | (4.8) % | (1.5) % |
Net sales | 796.6 | 859.6 | (7.3) % | (4.5) % |
The Company continued to diversify its net sales mix towards the non-travel8 product category which offers strong long-term growth opportunities. For the three months ended March 31, 2025, total net sales in non-travel8 product category decreased by
Net Sales Performance by Distribution Channel
Table 5: Net Sales by Distribution Channel
Distribution Channel | Three months ended March 31, 2025 US$ millions | Three months ended March 31, 2024 US$ millions | Percentage increase (decrease) 2025 vs. 2024 | Percentage Increase (decrease) 2025 vs. 2024 excl. foreign currency effects1 |
Wholesale & Other14 | 492.5 | 540.5 | (8.9) % | (6.1) % |
DTC: | ||||
Retail | 219.3 | 232.1 | (5.5) % | (2.6) % |
E-commerce | 84.8 | 87.0 | (2.5) % | (0.1) % |
Total DTC | 304.1 | 319.1 | (4.7) % | (1.9) % |
Net sales | 796.6 | 859.6 | (7.3) % | (4.5) % |
Net sales in the Company's wholesale channel for the three months ended March 31, 2025, decreased by
The Company continued to invest in its DTC business, adding nine net new company-operated retail stores during the three months ended March 31, 2025, compared to a net increase of 14 new company-operated retail stores during the first quarter of 2024. This brought the Company's global retail network to 1,128 company-operated retail stores as of March 31, 2025, compared to 1,066 as of March 31, 2024.
During the three months ended March 31, 2025, the Company's net sales in the DTC channel decreased by
Gross Profit
The Company's gross profit decreased by
Distribution Expenses
Distribution expenses decreased by
Marketing Expenses
The Company spent
General and Administrative Expenses
General and administrative expenses increased by
Other Expense and Income
The Company recorded other expense of
Operating Profit
The Company reported an operating profit of
Finance Income and Costs and Income Tax Expense
Net finance costs remained relatively stable at
The Company recorded income tax expense of
Adjusted EBITDA5 and Adjusted Net Income10
For the three months ended March 31, 2025, the Company recorded adjusted EBITDA5 of
As a result, adjusted net income10 decreased by
Working Capital
Inventories as of March 31, 2025, were
Net working capital6 was
Total Capital Expenditures
Total capital expenditures (consisting of purchases of property, plant and equipment and software) for the three months ended March 31, 2025, were
The Company intends to continue to invest in the upgrade and expansion of its retail store fleet, software to improve its e-commerce platforms and customer engagement capabilities, as well as other core strategic functions, to support net sales growth.
Balance Sheet and Adjusted Free Cash Flow4
Adjusted free cash flow4 decreased by
For the three months ended March 31, 2025, the Company repurchased 16.7 million shares with an associated cash outflow of
As of March 31, 2025, the Company held
Net debt was
Total liquidity3 as of March 31, 2025, was
Notes | |||
1 | Net sales results stated on a constant currency basis, a non-International Financial Reporting Standards ("IFRS") financial measure, are calculated by applying the average exchange rate of the quarter/year under comparison to current quarter/year local currency results. Unless otherwise stated, all net sales percentage increases/decreases are presented on a constant currency basis. | ||
2 | Adjusted EBITDA margin, a non-IFRS financial measure, is defined as adjusted EBITDA (as defined below) divided by net sales. | ||
3 | Total liquidity is calculated as the sum of cash and cash equivalents per the consolidated statements of financial position plus available capacity under the revolving credit facility. | ||
4 | The Company defines adjusted free cash flow, a non-IFRS financial measure, as cash generated from operating activities, less (i) purchases of property, plant and equipment and software and (ii) principal payments on lease liabilities. The Company believes adjusted free cash flow provides helpful additional information regarding the Company's liquidity and its ability to generate cash after excluding the use of cash from certain of its core operating activities. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures since it excludes certain mandatory expenditures, and adjusted free cash flow may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. | ||
5 | Adjusted earnings before interest, taxes, depreciation and amortization of intangible assets ("adjusted EBITDA"), a non-IFRS financial measure, eliminates the effect of a number of costs, charges and credits and certain other non-cash charges. Adjusted EBITDA is defined as profit for the year, adjusted to eliminate income tax expense, finance costs (excluding interest expense on lease liabilities), finance income, depreciation, amortization (excluding amortization of lease right-of-use assets), share-based compensation expense, impairment reversals and other expense. | ||
6 | Net working capital is the sum of inventories and trade and other receivables, minus accounts payable. Net working capital efficiency is calculated as net working capital divided by annualized net sales. | ||
7 | As of March 31, 2025, the Company had | ||
8 | The non-travel product category includes business and casual bags and backpacks, accessories and other products. | ||
9 | Effective since the third quarter of 2024, the Company voluntarily made a change in accounting policy related to the recognition of the subsequent changes in the fair value of put option financial liabilities associated with the non-controlling interests in certain of the Company's majority owned subsidiaries. | ||
10 | Adjusted net income, a non-IFRS financial measure, eliminates the effect of a number of costs, charges and credits and certain other non-cash charges, along with their respective tax effects, that impact the Company's reported profit attributable to the equity holders, which the Company's believes helps to give securities analysts, investors and other interested parties a more complete understanding of the Company's underlying financial performance. | ||
11 | Adjusted basic and diluted earnings per share, both non-IFRS financial measures, are calculated by dividing adjusted net income by the weighted average number of shares used in the basic and diluted earnings per share calculations, respectively. | ||
12 | The geographic location of the Company's net sales generally reflects the country/territory from which its products were sold and does not necessarily indicate the country/territory in which its end customers were actually located. | ||
13 | "Other" includes certain other non-core brands owned by the Company, such as Gregory, High Sierra, Kamiliant, Xtrem, Lipault, Hartmann, Saxoline and Secret, as well as certain third-party brands. | ||
14 | Includes licensing revenue of | ||
15 | For the three months ended March 31, 2025, the Company had total capital expenditures of | ||
Non-IFRS Financial Measures
In addition to the Company's results determined in accordance with IFRS Accounting Standards, management reviews certain non-IFRS financial measures, including constant currency net sales growth, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic and diluted earnings per share and adjusted free cash flow as detailed in this section to evaluate its business, measure its performance, identify trends affecting the Company, formulate business plans and make strategic decisions.
The Company believes that these non-IFRS financial measures, when used in conjunction with the IFRS Accounting Standards financial information, allow investors to better evaluate the Company's financial performance in comparison to other periods and to other companies in the industry. However, non-IFRS financial measures are not defined or recognized under IFRS Accounting Standards, are presented for supplemental informational purposes only and should not be considered in isolation or relied on as a substitute for financial information presented in accordance with IFRS Accounting Standards. The Company's presentation of any non-IFRS financial measures should not be construed as an inference that its future results will be unaffected by unusual or nonrecurring items. Other companies in the Company's industry may calculate non-IFRS financial measures differently, which may limit their usefulness as comparative measures.
Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of the Company's results under IFRS Accounting Standards. Constant currency net sales growth is limited as a metric to review the Company's financial results as it does not reflect the impacts of foreign currency on reported net sales. Some of the limitations of adjusted EBITDA and adjusted EBITDA margin include not capturing certain tax payments that may reduce cash available to the Company; not reflecting any cash capital expenditure requirements for the assets being depreciated and amortized that may have to be replaced in the future; not reflecting changes in, or cash requirements for, working capital needs; and not reflecting the interest expense, or the cash requirements necessary to service interest or principal payments. Some of the limitations of adjusted net income and adjusted basic and diluted earnings per share include not capturing the effect of a number of costs, charges and credits and certain other non-cash charges, along with their respective tax effects, that impact reported profit. Some of the limitations of adjusted free cash flow include that it does not reflect future contractual commitments or consider certain cash requirements such as interest payments, tax payments and debt service requirements and does not represent the total increase or decrease in the Company's cash balance for a given period. Because of these and other limitations, these non-IFRS financial measures should be considered along with comparable financial measures prepared and presented in accordance with IFRS Accounting Standards.
Constant Currency Net Sales Growth
The Company presents the percent change in constant currency net sales to supplement its net sales presented in accordance with IFRS Accounting Standards and to enhance investors' understanding of its global business performance by excluding the positive or negative period-over-period impact of foreign currency movements on reported net sales. To present this information, current and comparative prior period results for entities with functional currencies other than US Dollars are converted into US Dollars by applying the average exchange rate of the period under comparison to current period local currency results rather than the actual exchange rates in effect during the respective periods. The Company believes presenting constant currency information provides useful information to both management and investors by isolating the effects of foreign currency exchange rate fluctuations that may not be indicative of the Company's core operating results.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA eliminates the effect of a number of costs, charges and credits and certain other non-cash charges. Adjusted EBITDA is defined as profit for the period, adjusted to eliminate income tax expense, finance costs (excluding interest expense on lease liabilities), finance income, depreciation, amortization (excluding amortization of lease right-of-use assets), share-based compensation expense, impairment reversals and other expense. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales. The Company believes adjusted EBITDA and adjusted EBITDA margin provide additional information that is useful in gaining a more complete understanding of its operational performance and of the underlying trends of its business.
Adjusted EBITDA for the three months ended March 31, 2025, decreased by
The following table reconciles adjusted EBITDA and adjusted EBITDA margin to the Company's profit for the period and profit margin, the most directly comparable financial measures stated in accordance with IFRS, for the three months ended March 31, 2025, and March 31, 2024:
Three months ended March 31, | ||||||
(Expressed in millions of US Dollars) | 2025 | 2024 | Percentage | |||
Profit for the period(1) | 55.2 | 91.5 | (39.7) % | |||
Plus (minus): | ||||||
Income tax expense | 24.6 | 29.1 | (15.6) % | |||
Finance costs(1) | 32.4 | 32.9 | (1.7) % | |||
Finance income | (2.6) | (3.8) | (31.3) % | |||
Operating profit | 109.5 | 149.8 | (26.9) % | |||
Plus (minus): | ||||||
Depreciation | 14.8 | 11.7 | 26.2 % | |||
Total amortization | 44.5 | 41.2 | 8.1 % | |||
Share-based compensation expense | 3.3 | 3.7 | (8.5) % | |||
Amortization of lease right-of-use assets | (39.5) | (36.2) | 9.4 % | |||
Interest expense on lease liabilities | (8.9) | (8.4) | 6.6 % | |||
Other adjustments(2) | 3.8 | (0.6) | nm | |||
Adjusted EBITDA(3) | 127.6 | 161.2 | (20.9) % | |||
Net sales | 796.6 | 859.6 | ||||
Profit margin(1) | 6.9 % | 10.6 % | ||||
Adjusted EBITDA margin(4) | 16.0 % | 18.8 % | ||||
Notes | |
(1) | Effective since the third quarter of 2024, the Company voluntarily made a change in accounting policy related to the recognition of the subsequent changes in the fair value of put option financial liabilities associated with the non-controlling interests in certain of the Company's majority owned subsidiaries. The impact of adopting this change in accounting policy has been applied retrospectively and the comparative period in 2024 has been adjusted. All other financial statement captions for the period ended March 31, 2024, in this table that have not been identified with this footnote were not impacted by this policy change. |
(2) | Other adjustments primarily comprised 'Other (expense) and income' per the consolidated statements of income. |
(3) | Adjusted EBITDA eliminates the effect of a number of costs, charges and credits and certain other non-cash charges. Adjusted EBITDA includes the lease interest and amortization expense under IFRS 16, Leases ("IFRS 16") to account for operational rent expenses. |
(4) | Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net sales. |
nm | Not meaningful. |
Adjusted Net Income and Adjusted Earnings Per Share
Adjusted net income eliminates the effect of a number of costs, charges and credits and certain other non-cash charges, along with their respective tax effects, that impact the Company's reported profit attributable to equity holders, which the Company believes helps to give securities analysts, investors and other interested parties a more complete understanding of its underlying financial performance. Adjusted net income is defined as profit attributable to equity holders, adjusted to eliminate changes in the fair value of put options included in finance costs, amortization of intangible assets, derecognition of deferred financing costs associated with refinancing, impairment reversals, restructuring charges or reversals, US dual listing preparedness costs and tax adjustments. Adjusted basic and diluted earnings per share are calculated by dividing adjusted net income by the weighted average number of shares used in the basic and diluted earnings per share calculations, respectively.
Adjusted net income decreased by
The following table reconciles the Company's adjusted net income and adjusted basic and diluted earnings per share to profit for the period and basic and diluted earnings per share, the most directly comparable financial measures stated in accordance with IFRS Accounting Standards, for the three months ended March 31, 2025, and March 31, 2024:
Three months ended March 31, | ||||||
(Expressed in millions of US Dollars) | 2025 | 2024 | Percentage | |||
Profit for the period(1) | 55.2 | 91.5 | (39.7) % | |||
Less: profit attributable to non-controlling interests | 7.0 | 7.7 | (8.3) % | |||
Profit attributable to the equity holders(1) | 48.2 | 83.9 | (42.6) % | |||
Plus (minus): | ||||||
Change in the fair value of put options included in finance costs(1) | (1.8) | (0.6) | nm | |||
Amortization of intangible assets | 5.0 | 5.0 | (0.6) % | |||
Restructuring reversals | (0.1) | — | n/a | |||
US dual listing preparedness costs | 1.9 | — | n/a | |||
Tax adjustments(2) | (1.2) | (1.2) | nm | |||
Adjusted net income(3) | 52.0 | 87.1 | (40.3) % | |||
Basic earnings per share(1) | 0.035 | 0.058 | (40.2) % | |||
Diluted earnings per share(1) | 0.034 | 0.057 | (40.0) % | |||
Adjusted basic earnings per share | 0.037 | 0.060 | (37.8) % | |||
Adjusted diluted earnings per share | 0.037 | 0.059 | (37.7) % | |||
Notes | |
(1) | Effective since the third quarter of 2024, the Company voluntarily made a change in accounting policy related to the recognition of the subsequent changes in the fair value of put option financial liabilities associated with the non-controlling interests in certain of the Company's majority owned subsidiaries. The impact of adopting this change in accounting policy has been applied retrospectively and the comparative period in 2024 has been adjusted. All other financial statement captions for the period ended March 31, 2024, in this table that have not been identified with this footnote were not impacted by this policy change. |
(2) | Tax adjustments represent the tax effect of the reconciling line items as included in the consolidated statements of income based on the applicable tax rate in the jurisdiction where such costs were incurred. |
(3) | Represents adjusted net income attributable to the equity holders of the Company. |
n/a | Not applicable. |
nm | Not meaningful. |
Adjusted Free Cash Flow
Adjusted free cash flow is defined as cash generated from operating activities, less (i) purchases of property, plant and equipment and software and (ii) principal payments on lease liabilities. The Company believes adjusted free cash flow provides helpful additional information regarding the Company's liquidity and its ability to generate cash after excluding the use of cash from certain of its core operating activities. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures since it excludes certain mandatory expenditures, and adjusted free cash flow may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
The following table presents the reconciliation from the Company's net cash generated from operating activities per the condensed consolidated statements of cash flows to adjusted free cash flow for the three months ended March 31, 2025, and March 31, 2024:
Three months ended March 31, | ||||||
(Expressed in millions of US Dollars) | 2025 | 2024 | Percentage (decrease) | |||
Net cash generated from operating activities | 8.5 | 55.0 | (84.5) % | |||
Less: | ||||||
Purchases of property, plant and equipment and software | (11.4) | (13.2) | (13.2) % | |||
Principal payments on lease liabilities | (38.2) | (35.4) | 8.1 % | |||
Adjusted free cash flow | (41.2) | 6.5 | nm | |||
Note |
nm Not meaningful. |
2025 First Quarter Results – Conference Call for Analysts and Investors:
Date: | Tuesday, May 13, 2025 |
Time: | 08:30 |
Live Audio | |
Teleconference | https://register-conf.media-server.com/register/BIa2e2d2bdb1ff4804871b29b26b23111e (Dial-in details will be sent to registrants by email after registration) |
About Samsonite Group
With a heritage dating back 115 years, Samsonite Group S.A., together with its consolidated subsidiaries (the "Company", "Samsonite Group", "it" or "its"), is the world's best-known and largest travel luggage company and a leader in global lifestyle bags. The Company owns and operates a portfolio of customer-centric and iconic brands, led by Samsonite®, TUMI®, and American Tourister®, that empower its customers' journeys with globally trusted, innovative and increasingly sustainable products. The Company is principally engaged in the design, manufacture, sourcing and distribution of luggage, business and computer bags, outdoor and casual bags and travel accessories throughout the world, primarily under the Samsonite®, TUMI®, American Tourister®, Gregory®, High Sierra®, Lipault® and Hartmann® brand names as well as other owned and licensed brand names. The Company sells its products through a variety of wholesale distribution channels, through its company-operated retail stores and through e-commerce. The Company sells its products primarily in
For more information, please contact: | ||
Samsonite Group S.A. Tel: +1 508 851 1586 | Samsonite Group S.A. – Tel: +852 2422 2611 | |
Alvin Concepcion Email: Alvin.Concepcion@samsonite.com
| William Yue Email:
| Helena Sau Email: |
Tel: +1 212 355 4449 Michael Freitag / Tim Ragones / Ed Trissel Email: Samsonite-JF@joelefrank.com | ||
Non-IFRS Financial Measures
The Company has presented certain non-IFRS financial measures in this press release because each of these measures provides additional information that management believes is useful for securities analysts, investors and other interested parties to gain a more complete understanding of the Company's operational performance and the trends impacting its business. These non-IFRS financial measures, as calculated herein, may not be comparable to similarly named measures used by other companies and should not be considered comparable to IFRS financial measures. Non-IFRS financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, an analysis of the Company's financial results as reported under IFRS Accounting Standards.
Special Note Regarding Forward-looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements by the words "anticipate," "believe," "continue," "could," "expect," "intend," "may," "ongoing," "opportunity," "plan," "potential," "project," "trend," "will," "would," or the negative of these terms, or other comparable terminology intended to identify statements about the future. These statements involve known and unknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to materially differ from the information expressed or implied by these forward-looking statements. The forward-looking statements and opinions contained in this press release are based upon information available to the Company as of the date of this press release and, while the Company believes such information forms a reasonable basis for such statements, such information may be limited or incomplete, and the Company's statements should not be read to indicate that it has conducted an exhaustive inquiry into, or review of, all potentially available relevant information. Forward-looking statements contained in this press release include, but are not limited to, statements concerning:
- the strength and positioning of the Company's brands and its ability to preserve the desirability of its brands and products;
- the Company's ability to implement its growth strategies and expand its product offerings and market reach, including with respect to the non-travel product category;
- the Company's market opportunity and its ability to grow sales in established markets with high growth potential and deepen penetration in emerging markets;
- the Company's ability to manage its channel mix and execute on its multi-channel strategy;
- the performance of the Company's direct-to-consumer ("DTC") channel, including the streamlining of its retail store fleet and success of its company-operated retail stores and e-commerce platforms;
- the effects of trends in the travel industry, and air travel in particular, on the Company's business;
- the outcome of negotiations between
the United States and its global trading partners with respect to the tariffs recently announced bythe United States , and the resulting impacts on global macroeconomic and geopolitical conditions, and on the Company's business; - the Company's platform and other competitive advantages and the competitive environment in which it operates;
- the Company's financial profile, including with respect to operating leverage and margins, and the resiliency of its operating model;
- the Company's ability to generate cash from operations, invest in its business and return capital to shareholders;
- the Company's in-house design, development and manufacturing abilities;
- the Company's ability to expand its brand portfolio;
- the Company's marketing and advertising strategy and the expected growth of its marketing expenses over the long term;
- the Company's intent to continue to spend on property, plant and equipment to upgrade and expand its retail store fleet; and
- the Company's financial position over the next twelve months and future periods, including with respect to its existing and estimated cash flows, working capital and access to financing.
Actual events or results may differ from those expressed in forward-looking statements. As such, you should not rely on forward-looking statements as predictions of future events. The Company has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may affect its business, financial condition, operating results, prospects, strategy and financial needs. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, assumptions and other factors including, among other things, risks related to: the effects of consumer spending and general economic conditions; adverse impacts on the travel industry, especially air travel, including due to geopolitical events; any deterioration in the strength of the Company's brands, or its inability to grow these brands; the Company's inability to expand internationally or maintain successful relationships with local distribution and wholesale partners; the competitive environment in which the Company operates; the Company's inability to maintain its network of sales and distribution channels or manage its inventory effectively; the Company's inability to grow its digital distribution channel and execute its e-commerce strategy; the Company's inability to promote the success of its retail stores; deterioration or consolidation of the Company's wholesale customer base; the financial health of the Company's wholesale customer base; the Company's inability to maintain or enhance its marketing position; the Company's inability to respond effectively to changes in market trends and consumer preferences; harm to the Company's reputation; manufacturing or design defects in the Company's products, or products that are otherwise unacceptable to the Company or to its wholesale customers; the impacts of merchandise returns and warranty claims on the Company's business; the Company's inability to appeal to new consumers while maintaining the loyalty of its core consumers; the Company's inability to exercise sufficient oversight over its decentralized operations; the Company's inability to attract and retain talented and qualified employees, managers, and executives; the Company's dependence on existing members of management and key employees; the Company's inability to accurately forecast its inventory and working capital requirements; disruptions to the Company's manufacturing, warehouse and distribution operations; the Company's reliance on third-party manufacturers and suppliers; the impact of governmental laws and regulations and changes and uncertainty related thereto, including tariffs and trade wars, export controls, sanctions and other regulations on the Company's business; the Company's failure to comply with US and foreign laws related to privacy, data security and data protection; the complex and changing laws and regulations worldwide to which the Company is subject; the Company's failure to comply with, or liabilities under, environmental, health and safety laws and regulations or sustainability-related regulations; the Company's failure to satisfy regulators' and stakeholders' requirements and expectations related to sustainability-related matters; the impact of legal proceedings and regulatory matters; the complex taxation regimes to which the Company is subject, including audits, investigations and other proceedings, and changes to such taxation regimes; the Company's accounting policies, estimates and judgments, and the effect of changes in accounting standards or its accounting policies; and the Company's existing and future indebtedness.
The preceding paragraph and list are not intended to be an exhaustive description of all of the Company's forward- looking statements or related risks. The forward-looking statements contained in this press release speak only as of the date of this press release. Moreover, the Company operates in a highly competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by the Company or any other person that the Company will achieve its objectives and plans in any specified time frame, or at all. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
In addition, statements that the "Company believes" and similar statements reflect the Company's beliefs and opinions on the relevant subject. These statements are based on information available to the Company as of the date of this press release. While the Company believes that such information provides a reasonable basis for these statements, such information may be limited or incomplete. The Company's statements should not be read to indicate that it has conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
You should read this press release with the understanding that the Company's actual future results may be materially different from what it expects. The Company may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the Company's forward-looking statements.
Rounding
Certain amounts presented in this press release have been rounded up or down to the nearest tenth of a million unless otherwise indicated. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them. With respect to financial information set out in this press release, a dash ("—") signifies that the relevant figure is not available, not applicable or zero, while a zero ("0.0") signifies that the relevant figure is available but has been rounded to zero. There may therefore be discrepancies between the actual totals of the individual amounts in the tables and the totals shown and between the amounts in the tables and the amounts given in the corresponding analyses in the text of this press release and between amounts in this press release and other publicly available press releases. All percentages and key figures were calculated using the underlying data in whole United States Dollars.
View original content:https://www.prnewswire.com/news-releases/samsonite-group-sa-announces-results-for-the-first-quarter-ended-march-31-2025-302453858.html
SOURCE Samsonite
FAQ
What was Samsonite's (SMSEY) revenue performance in Q1 2025?
How did TUMI brand perform across different regions in Q1 2025?
What is Samsonite's strategy to address U.S. tariff challenges?
How much did Samsonite return to shareholders in Q1 2025?
What is Samsonite's outlook for Q2 2025?
