Samsonite Group (1910) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were $797 million, down 4.5% year-over-year, reflecting tough prior-year comparisons and softer consumer sentiment, especially in Asia and North America.

• Gross margin was 59.4%, down from 60.4% last year, mainly due to lower sales in higher-margin Asia.

• Adjusted EBITDA was $128 million (16% margin), down 20.9% from last year’s record, with cost discipline offsetting lower sales.

• Adjusted net income was $52 million, down 40.3% from Q1 2024, with EPS at $0.037.

• Distribution and G&A expenses were flat year-over-year at $318 million, despite 62 net new stores.

Financial highlights

• Operating profit was $110 million, down from $150 million last year, mainly due to lower gross profit.

• Adjusted free cash flow was negative $41 million, mainly due to inventory pre-purchases and higher working capital.

• Net debt increased to $1,194 million, with net leverage at 1.8x and liquidity near $1.4 billion.

• Advertising spend was $42 million (5.3% of sales), down $11 million from last year.

• CapEx was $11.4 million, focused on store remodels, new stores, and strategic initiatives.

Outlook and guidance

• Q2 2025 net sales expected to decline mid-single digits year-over-year, similar to Q1, as U.S. tariff uncertainty continues to impact demand.

• H2 2025 outlook remains uncertain due to fluid tariff situation, but sequential improvement expected from easier prior-year comparisons and new product launches.

• EBITDA margin is expected to improve in Q2 due to seasonality and higher sales volume.

• Management expects continued macroeconomic and geopolitical uncertainty to impact consumer demand, especially in discretionary categories.

• Preparations for a potential U.S. dual listing are ongoing, with timing dependent on market conditions.