Samsonite Group (1910) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of 2025 were $1,661.7 million, down 6.0% year-over-year (5.2% on a constant currency basis), reflecting normalization after record 2023 growth and softer consumer sentiment amid macroeconomic and geopolitical uncertainty.

• DTC channels showed resilience, declining only 1.6% while wholesale dropped 7.4%; DTC now accounts for 39.6% of net sales, highlighting strategic focus on brand positioning and profitability.

• Gross margin remained robust at 59.2%, down 100 basis points from last year due to geographic mix and promotional initiatives, with adjusted EBITDA margin at 16.2%.

• Adjusted net income was $123.4 million, down 29.1% year-over-year; adjusted free cash flow was $11.5 million, impacted by higher inventory and lower EBITDA.

• Strategic investments in DTC, product innovation, and non-travel categories are driving long-term growth, with non-travel now 36.2% of sales, up 180 basis points year-over-year.

Financial highlights

• Net sales: $1,661.7 million (down 6.0% year-over-year; -5.2% constant currency); gross margin: 59.2% (down 100 bps); adjusted EBITDA: $268.7 million (16.2% margin, down from 18.9%).

• Adjusted net income: $123.4 million (down 29.1%); adjusted free cash flow: $11.5 million (down from $81.6 million prior year).

• Net debt: $1,161.8 million as of June 30, 2025; net leverage: 1.85x; liquidity: $1.4 billion.

• Operating profit: $238.4 million, down 24.2% year-over-year.

• Marketing expenses: $98.7 million, down 15.9%, representing 5.9% of net sales.

Outlook and guidance

• Sequential improvement in net sales is possible in Q3 2025, but full-year guidance is withheld due to ongoing macroeconomic, geopolitical, and consumer sentiment uncertainties.

• Long-term growth outlook remains positive, supported by travel industry tailwinds and ongoing investments in product, brand, and channel expansion.

• Preparations for a potential dual listing in the U.S. are ongoing, pending improved market conditions.

• Tariff clarity in North America expected to help stabilize gross margin; further price increases and cost actions under evaluation.