Samsonite Group (1910) H1 2024 earnings summary

Executive summary

• Net sales for H1 2024 were $1,769 million, up 2.8% year-over-year on a constant currency basis, despite macroeconomic headwinds and softer consumer sentiment in key markets.

• Gross margin reached a record 60.2%, up 140 bps, driven by higher DTC sales and disciplined expense management.

• Adjusted EBITDA was $333.5 million with a record margin of 18.9%, reflecting expense discipline and stable profitability.

• Free cash flow increased to $82 million, net debt reduced to $1.0 billion, and net leverage fell to 1.39x, the lowest since the Tumi acquisition.

• Board authorized a dual U.S. listing and a $200 million share buyback program, with $150 million cash distribution paid in July 2024.

Financial highlights

• Q1 sales grew 4.1% year-over-year; Q2 sales up 1.5% constant currency, with overall H1 net sales at $1,768.5 million (+2.8% constant currency, -0.4% reported).

• Adjusted EBITDA reached $333.5 million, margin up 10 bps to 18.9% despite higher advertising spend.

• DTC sales grew 4.7%, now 38.1% of revenue; e-commerce up 10%.

• Non-travel sales up 5.3%, now 34.4% of net sales.

• CapEx was $41.2 million, mainly for new stores, remodels, and distribution center upgrades.

Outlook and guidance

• Expect low-single-digit positive revenue growth for full year, with Q3 likely slightly negative; 2025 growth anticipated in mid-to-upper single digits, pending consumer sentiment recovery.

• Macroeconomic uncertainty and softening consumer sentiment expected to persist in H2 2024, especially in North America and Asia.

• EBITDA margin expected to remain around 19% for the year, with advertising spend targeted at ~7% of net sales.

• Continued focus on high-quality, profitable sales, margin discipline, and brand investment.

• Progress on sustainability, with near-term science-based emissions reduction target to be published in 2024.