Samsonite International S.A. Announces Results for the Three Month Period Ended March 31, 2024
First quarter 2024 consolidated net sales
increased by 4.1%
1
year-on-year
driven by growth in
Continued expansion in gross profit margin and Adjusted EBITDA margin2
during the three months ended
Continued balance sheet deleveraging, driven by strong profit growth and Free Cash Flow 3 with net leverage ratio 4 at lowest level since 2016 acquisition of Tumi
Overview
Commenting on the results, Mr.
During the three months ended
The Group's gross profit margin expanded to 60.4% in the first quarter of 2024, driven by year-on-year gross profit margin improvements in all regions, and by both the
"As we announced in
"In
"Looking ahead, growth in global travel and tourism is expected to remain healthy throughout 2024, sustaining demand for our products. In certain markets, we have observed customer traffic and net sales returning closer to historical trends compared to the extraordinary levels witnessed last year. That said, backed by our portfolio of leading brands, unrivaled global sourcing and a strong distribution infrastructure, we are well positioned to continue investing in product innovation and marketing and to outpace the market, and we remain focused on delivering profitable net sales growth."
"During the first quarter of 2024 we saw notable net sales gains and promising consumer trends in
"Our year-on-year net sales comparisons in
"We remain disciplined with promotional discounts to sustain our improved gross profit margin, and continue to invest in the business to drive net sales growth. Our investments are focused on product innovation and sustainability initiatives, further expansion and upgrades of our retail store fleet, as well as in marketing to support new product launches. In addition, we continue to diligently manage our fixed selling, general and administrative ("SG&A") expenses to drive positive operating leverage. During the first quarter of 2024, our fixed SG&A expenses increased by
Table 1: Key Financial Highlights for the Three Months Ended |
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Expressed in US$ millions, except per share data |
Three months |
Three months |
Percentage increase (decrease) 2024 vs. 2023 |
Percentage increase (decrease) 2024 vs. 2023 excl. foreign currency effects1 |
Net sales |
859.6 |
852.1 |
0.9 % |
4.1 % |
Gross profit |
519.5 |
494.5 |
5.0 % |
9.1 % |
Gross profit margin |
60.4 % |
58.0 % |
|
|
Operating profit |
149.8 |
144.7 |
3.5 % |
9.3 % |
Profit attributable to the equity |
82.9 |
73.8 |
12.3 % |
18.8 % |
Adjusted Net Income6 |
87.1 |
81.2 |
7.2 % |
13.1 % |
Adjusted EBITDA5 |
161.2 |
156.4 |
3.1 % |
8.5 % |
Adjusted EBITDA margin2 |
18.8 % |
18.4 % |
|
|
Basic earnings per share – |
0.057 |
0.051 |
11.6 % |
18.0 % |
Diluted earnings per share – |
0.056 |
0.051 |
11.0 % |
17.4 % |
Adjusted basic earnings per Expressed in US$ per share |
0.060 |
0.056 |
6.6 % |
12.4 % |
Adjusted diluted earnings per Expressed in US$ per share |
0.059 |
0.056 |
6.0 % |
11.8 % |
Results for the Three Months Ended
The Group's performance for the three months ended
For the three months ended
Net Sales Performance by Region |
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Table 2: |
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Region10 |
Three months ended US$ millions |
Three months ended US$ millions |
Percentage increase (decrease) 2024 vs. 2023 |
Percentage increase (decrease) 2024 vs. 2023 excl. foreign currency effects1 |
|
340.1 |
329.1 |
3.3 % |
7.5 % |
|
285.3 |
284.3 |
0.3 % |
0.3 % |
|
175.5 |
179.9 |
(2.5) % |
(0.5) % |
|
58.5 |
58.4 |
0.2 % |
17.9 % |
Corporate |
0.2 |
0.3 |
(29.3) % |
(29.3) % |
Net sales |
859.6 |
852.1 |
0.9 % |
4.1 % |
For the three months ended
For the three months ended
For the three months ended
During the first quarter of 2024, the Group's net sales decreased in Germany by 13.3%1, in
For the three months ended
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Table 3: |
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Brand |
Three months ended US$ millions |
Three months ended US$ millions |
Percentage increase (decrease) 2024 vs. 2023 |
Percentage increase (decrease) 2024 vs. 2023 excl. foreign currency effects1 |
Samsonite |
439.8 |
424.2 |
3.7 % |
6.5 % |
Tumi |
194.0 |
194.5 |
(0.3) % |
1.6 % |
American Tourister |
151.1 |
151.2 |
(0.1) % |
3.2 % |
Other12 |
74.8 |
82.3 |
(9.1) % |
(0.6) % |
Net sales |
859.6 |
852.1 |
0.9 % |
4.1 % |
The Group's core brands all achieved constant currency net sales gains during the first quarter of 2024 compared to the first quarter of 2023.
For the three months ended
For the three months ended
For the three months ended
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Table 4: |
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Product Category |
Three months ended US$ millions |
Three months ended US$ millions |
Percentage increase (decrease) 2024 vs. 2023 |
Percentage increase (decrease) 2024 vs. 2023 excl. foreign currency effects1 |
Travel |
558.3 |
555.7 |
0.5 % |
2.8 % |
Non-travel13 |
301.3 |
296.5 |
1.6 % |
6.6 % |
Net sales |
859.6 |
852.1 |
0.9 % |
4.1 % |
The Group's net sales in the travel product category continued to improve, driven mainly by the continued recovery and growth in travel. Net sales in the travel product category increased by 2.8%1 year-on-year and accounted for 64.9% of total net sales in the first quarter of 2024, compared to 65.2% of total net sales in the first quarter of 2023. Total non-travel13 product category net sales increased by 6.6%1 year-on-year and accounted for 35.1% of total net sales in first quarter of 2024, compared to 34.8% of total net sales in the first quarter of 2023.
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Table 5: |
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Distribution Channel |
Three months ended US$ millions |
Three months ended US$ millions |
Percentage increase (decrease) 2024 vs. 2023 |
Percentage increase (decrease) 2024 vs. 2023 excl. foreign currency effects1 |
Wholesale |
540.0 |
543.9 |
(0.7) % |
2.1 % |
DTC |
319.1 |
307.9 |
3.7 % |
7.6 % |
Other14 |
0.5 |
0.4 |
37.0 % |
37.0 % |
Net sales |
859.6 |
852.1 |
0.9 % |
4.1 % |
The Group's wholesale net sales decreased by
During the three months ended
During the three months ended
Gross Profit
The Group's gross profit increased by
Investment in Marketing
The Group increased marketing activities as planned, spending US$52.8 million during the three months ended
Distribution Expenses
Distribution expenses increased by
General and Administrative Expenses
General and administrative expenses decreased by
Operating Profit
The Group reported an operating profit of
Net Finance Costs and Income Tax Expense
Net finance costs decreased by
The above decreases were partially offset by an increase in interest expense on lease liabilities of
The Group recorded income tax expense of
Profit Attributable to the Equity Holders
The Group recorded profit attributable to the equity holders of
Adjusted EBITDA and Adjusted Net Income
For the three months ended
The increase in the Group's Adjusted EBITDA margin2 was driven primarily by a 240-basis point year-on-year increase in the Group's gross profit margin to 60.4% for the first quarter of 2024. This increase was partially offset by a 20-basis point year-on-year increase in marketing expenses to 6.1% of net sales in the first quarter of 2024, and a 140-basis point year-on-year increase in fixed SG&A expenses as a percentage of net sales.
The Group's fixed SG&A expenses increased by
Adjusted Net Income6 was
Working Capital
The Group continued to optimize its working capital, particularly inventories, to support net sales growth. At
Trade and other receivables increased by
Total Capital Expenditures
As the business continues to grow, the Group is prudently increasing its spending on total capital expenditures toward retail expansion in key markets and refreshing its company-operated retail store fleet. During the three months ended
Balance Sheet and Free Cash Flow
The Group continued to focus on cash management and debt reduction. With robust profit and prudent cash and working capital management, Samsonite generated Free Cash Flow3 of
The reduction in net debt, together with the strong growth in Adjusted EBITDA5, enabled the Group to further lower its net leverage ratio4 to 1.48x as of
On
2024 First Quarter Results – Earnings Call for Analysts and Investors: |
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Date: |
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Time: |
09:00 |
Webcast Link: |
http://webcast.live.wisdomir.com/samsonite_24q1/index_en.php |
Dial-in Details: |
– End –
About Samsonite
With a heritage dating back to 1910,
For more information, please contact:
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Samsonite International S.A. – |
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Tel: +852 2422 2611 |
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William Yue |
Helena Sau |
Email: william.yue@samsonite.com |
Email: helena.sau@samsonite.com |
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Tel: +1 212 355 4449 |
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Email: Samsonite-JF@joelefrank.com |
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Notes |
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1 |
Results stated on a constant currency basis, a non-International Financial Reporting Standards ("IFRS") Accounting Standards measure, are calculated by applying the average exchange rate of the quarter/year-to-date period under comparison to current period local currency results. |
2 |
Adjusted EBITDA margin, a non-IFRS measure, is calculated by dividing adjusted earnings before interest, taxes, depreciation and amortization of intangible assets ("Adjusted EBITDA") by net sales. |
3 |
Free Cash Flow is defined as net cash generated from (used in) operating activities less (i) purchases of property, plant and equipment and software ("total capital expenditures") and (ii) principal payments on lease liabilities (each as set forth on the consolidated statements of cash flows). |
4 |
The total net leverage ratio is calculated by dividing total consolidated net debt minus the aggregate amount of unrestricted cash by the consolidated Adjusted EBITDA for the trailing four fiscal quarters on a pro forma basis as defined in the credit agreement. |
5 |
Adjusted EBITDA, a non-IFRS measure, eliminates the effect of a number of costs, charges and credits and certain other non-cash charges. The Group believes these measures provide additional information that is useful in gaining a more complete understanding of its operational performance and of the underlying trends of its business. |
6 |
Adjusted Net Income, a non-IFRS 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 Group's reported profit attributable to the equity holders, which the Group believes helps to give securities analysts, investors and other interested parties a more complete understanding of the Group's underlying financial performance. |
7 |
On |
8 |
Total liquidity is calculated as the sum of cash and cash equivalents per the consolidated statements of financial position plus available capacity under the Group's revolving credit facility. As of |
9 |
Adjusted basic and diluted earnings per share, both non-IFRS 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. |
10 |
The geographic location of the Group'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. |
11 |
Net sales reported for the |
12 |
Other includes certain other non-core brands owned by the Group, such as Gregory, High Sierra, Kamiliant, ebags, Xtrem, Lipault, Hartmann, Saxoline and Secret. |
13 |
The non-travel product category includes business, casual, accessories and other products. |
14 |
"Other" primarily consists of licensing revenue. |
15 |
Net working capital efficiency is calculated as net working capital (the sum of inventories and trade and other receivables, minus accounts payable) divided by annualized net sales. |
16 |
For the three months ended |
17 |
As of |
Non-IFRS Measures
The Company has presented certain non-IFRS 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 Group's operational performance and of the trends impacting its business. These non-IFRS measures, as calculated herein, may not be comparable to similarly named measures used by other companies, and should not be considered comparable to IFRS measures. Refer to the relevant announcement/report published by the Company for the corresponding period for reconciliations of the Group's non-IFRS Accounting Standards financial information. Non-IFRS measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, an analysis of the Group's financial results as reported under IFRS Accounting Standards.
Forward-looking Statements
This press release contains forward-looking statements. Forward-looking statements reflect the Company's current views with respect to future events and performance. These statements may discuss, among other things, the Company's net sales, gross profit margin, operating profit, Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA margin, cash flow, liquidity and capital resources, potential impairments, growth, strategies, plans, achievements, distributions, organizational structure, future store openings or closings, market opportunities and general market and industry conditions. The Company generally identifies forward-looking statements by words such as "expect", "seek", "believe", "plan", "intend", "estimate", "project", "anticipate", "may", "will", "would" and "could" or similar words or statements. Forward-looking statements are based on beliefs and assumptions made by management using currently available information. These statements are only predictions and are not guarantees of future performance, actions or events. Forward-looking statements are subject to risks and uncertainties.
If one or more of these risks or uncertainties materialize, or if management's underlying beliefs and assumptions prove incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Among the factors that could cause actual results to differ materially are: the effect of worldwide economic conditions; the effect of political or social unrest and armed conflict; the effects of inflation; a general economic downturn or generally reduced consumer spending; significant changes in consumer spending patterns or preferences; competition; interruptions or delays in the supply of finished goods or key components; the performance of the Group's products within the prevailing retail environment; and financial difficulties encountered by customers and related bankruptcy and collection issues.
Forward-looking statements speak only as of the date on which they are made. The Company's shareholders, potential investors and other interested parties should not place undue reliance on these forward-looking statements. The Company expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities laws and regulations.
Rounding
Certain amounts presented in this
press release
have been rounded up or down to the nearest tenth of a million, unless otherwise indicated. There may therefore be discrepancies between the actual totals of the individual amounts in the tables and the totals shown, 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 documents. All percentages and key figures were calculated using the underlying data in whole US Dollars.
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SOURCE Samsonite