Samsonite Group (1910) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 were US$3,589 million, nearly flat year-over-year (down 2.5% reported, flat constant currency), following a record 2023 and reflecting softer sentiment in Asia and India, but supported by robust travel trends and DTC growth.

• Gross margin improved to 60.0% (up 70bps), driven by disciplined promotions, SKU transformation, and increased DTC channel mix.

• Adjusted EBITDA was US$683 million (19.0% margin), down 3.7% year-over-year, with Q4 margin reaching a record 20.7%, up 160bps.

• Adjusted net income for the year was US$369.8 million, down 5.8% year-over-year, mainly due to lower sales and higher depreciation.

• Free cash flow for the year was US$311 million, up 9.3% year-over-year, with net debt stable at US$1.1 billion.

Financial highlights

• Q4 2024 net sales were US$942 million, up 1% year-over-year, with sequential improvements across all regions.

• Q4 gross margin was 60.2%, up 30bps year-over-year; full-year gross margin was 60.0%, up 70bps.

• Q4 adjusted EBITDA margin reached 20.7%, up 160bps year-over-year; full-year margin was 19.0%, down 30bps.

• Adjusted net income for Q4 was US$116.1 million, up 21.2%; full-year adjusted net income was US$369.8 million.

• Net debt at year-end was US$1.1 billion, with net leverage at 1.58x and liquidity of US$1.4 billion.

Outlook and guidance

• Q1 2025 net sales expected to be down low to mid-single digits year-over-year, mainly due to timing and North America softness, with sequential improvement anticipated for the rest of 2025.

• Europe and Latin America expected to remain steady; Asia showing improving trends, with India turning positive.

• EBITDA margin for 2025 expected to be similar to 2024, with advertising spend targeted at 6.5% of sales.

• Board recommended a US$150 million dividend for 2025 (43.4% payout ratio); preparations for a potential dual listing in the US are ongoing.

• Long-term outlook supported by robust travel and tourism trends and focus on higher-margin brands.