Samsonite Group (1910) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales were $872.7 million, down 1.3% year-over-year, but showed sequential improvement from Q2, with all regions and brands improving and DTC net sales up 3.5%.

• Gross margin expanded to 59.6%, up 30 bps year-over-year, driven by favorable mix, DTC growth, and effective tariff mitigation.

• Adjusted EBITDA margin was 16.3%, down 130 bps year-over-year due to higher distribution and G&A expenses.

• Operating profit for Q3 2025 increased to $139.2 million, aided by a $14.5 million accrual reversal in Belgium.

• Non-travel sales rose nearly 7% in Q3, now representing 35.6% of total sales, reflecting a strategic focus on this growth area.

Financial highlights

• Q3 2025 net sales: $872.7 million, down 1.3% year-over-year; nine months: $2.53 billion, down 4.2%.

• Gross margin: 59.6% in Q3 2025, up 30 bps year-over-year.

• Adjusted EBITDA: $142.6 million in Q3 2025, margin 16.3%, down 7.7% year-over-year.

• Adjusted net income: $63.6 million in Q3 2025, down 20.2% year-over-year.

• Adjusted free cash flow: $64.7 million in Q3 2025.

Outlook and guidance

• Expecting sequential improvement in Q4 net sales, supported by strong travel demand, new product launches, and increased advertising.

• Gross margin expected to remain strong, with further expansion possible as Asia and TUMI grow.

• Ongoing investments in DTC and e-commerce channels to support long-term growth.

• Confident in medium- and long-term growth, with plans for a dual US listing in 2026.

• Management expects continued macroeconomic uncertainty and cautious wholesale purchasing to impact near-term sales.