Samsonite International S.A., the parent company of the Gregory, High Sierra and Tumi, reported that net sales increased by $278.5 million, or 48.5 percent (+55.3 percent constant-currency), during the three months ended March 31, compared to the 2022 first quarter. The Group’s net sales continued to improve as the effects of the pandemic further receded, which led to a robust recovery in leisure and business travel and increased demand for the Group’s products.

The company noted a noticeable acceleration in the Group’s net sales recovery in all regions during the first quarter, particularly in Asia, where most of the region was still in heavy lockdowns in the first quarter of 2022 and restrictions have now been lifted.

When evaluating the results for the first quarter, certain factors impact comparability to prior year periods, mainly the suspension and subsequent disposition of operations in Russia and the sale of Speck. On March 14, 2022, the Group suspended all commercial activities in Russia due to the armed conflict in Ukraine, and the Group subsequently completed the disposition of its Russian operations on July 1, 2022. On July 30, 2021, a wholly-owned subsidiary of the company sold Speck, a designer and distributor of slim protective cases for personal electronic devices that were marketed under the Speck brand. When excluding the Russia Net Sales, consolidated net sales increased by $286.2 million, or 50.6 percent (+57.4 percent constant-currency), for the first quarter, compared to the 2022 first quarter.

The Group’s consolidated net sales as reported increased by 2.4 percent (+12.8 percent constant-currency) during the first quarter, compared to the three months ended March 31, 2019. When excluding the Russia and Speck Net Sales in 2019, consolidated net sales increased by 7.1 percent (+18.0 percent constant-currency) for the first quarter, compared to the three months ended March 31, 2019.

The Group’s net sales performance continued to improve during April 2023. Net sales for April 2023 increased by 41.4 percent and by 2.0 percent (+45.1 percent and +10.4 percent constant-currency) compared to April 2022 and April 2019, respectively. When excluding the Russia Net Sales for April 2022 and the Russia and Speck Net Sales for April 2019, consolidated net sales increased by 41.6 percent and by 7.2 percent (+45.4 percent and +15.9 percent constant-currency) for April 2023 compared to April 2022 and April 2019, respectively.

Net sales in the travel product category during the first quarter, increased by $205.3 million, or 58.6 percent (+65.6 percent constant-currency), compared to the 2022 first quarter. The Group’s net sales in the travel product category continued to improve as the effects of the pandemic further receded, which led to a robust recovery in leisure and business travel and increased demand for the Group’s products. Total non-travel product category net sales, which comprises business, casual, accessories and other products, increased by $73.2 million, or 32.8 percent (+39.0 percent constant-currency), for the first quarter, compared to the 2022 first quarter.

Net sales of business products increased by $40.9 million, or 34.0 percent (+40.2 percent constant-currency), for the first quarter, compared to the same period in 2022. Net sales of casual products increased by $18.6 million, or 29.6 percent (+36.0 percent constant-currency), year-on-year. Net sales of accessories products increased by $9.6 million, or 29.5 percent (+33.2 percent constant-currency), year-on-year.

Net sales in the wholesale channel increased by $168.6 million, or 44.9 percent (+51.7 percent constant-currency), during the first quarter, compared to the 2022 first quarter. Net sales to e-retailers, which are included in the Group’s wholesale channel, increased by $19.7 million, or 41.3 percent (+46.2 percent constant-currency), during the first quarter, compared to the same period in 2022.

Net sales in the DTC channel, which includes company-operated retail stores and DTC e-commerce, increased by $109.8 million, or 55.5 percent (+62.1 percent constant-currency), to $307.9 million (representing 36.1 percent of net sales) for the first quarter, from $198.0 million (representing 34.5 percent of net sales) for the 2022 first quarter.

Net sales in the DTC retail channel increased by $82.2 million, or 56.9 percent (+63.7 percent constant-currency), during the first quarter, compared to the same period in 2022 primarily due to an increase in consumer demand. During the first quarter, the Group added 11 company-operated retail stores. This was partially offset by the permanent closure of company-operated retail stores. This resulted in a net addition of 4 company-operated retail stores during the first quarter, compared to a net reduction of 13 company-operated retail stores during the 2022 first quarter. The total number of company-operated retail stores was 989 as of March 31, 2023, compared to 992 as of March 31, 2022, and 1,260 as of March 31, 2019.

On a same-store, constant-currency basis, retail net sales grew by 62.6 percent for the first quarter, compared to the 2022 first quarter. This was due to constant-currency same-store net sales increases of 107.3 percent, 43.3 percent, 76.2 percent and 30.6 percent in Asia, North America, Europe and Latin America, respectively. The Group’s same-store analysis includes existing company-operated retail stores which have been open for at least 12 months before the end of the relevant financial period.

Total DTC e-commerce net sales increased by $27.6 million, or 51.5 percent (+57.8 percent constant-currency), to $81.2 million (representing 9.5 percent of net sales) for the first quarter, from $53.6 million (representing 9.3 percent of net sales) for the 2022 first quarter.

During the first quarter, $148.7 million of the Group’s net sales were through e-commerce channels (comprising $81.2 million of net sales from the Group’s DTC e-commerce website, which are included within the DTC channel, and $67.5 million of net sales to e-retailers, which are included within the wholesale channel). This represented a year-on-year increase of $47.3 million, or 46.7 percent (+52.3 percent constant-currency), compared to the 2022 first quarter when e-commerce comprised $101.4 million of the Group’s net sales. During the first quarter, the Group’s net sales through e-commerce channels represented 17.5 percent of total net sales compared to 17.7 percent of total net sales for the 2022 first quarter.

The Group’s core brands all recorded strong year-on-year net sales increases during the first quarter, compared to the 2022 first quarter.

  • Net sales of the Samsonite brand increased by $153.5 million, or 56.7 percent (+64.3 percent constant-currency), year-on-year;
  • Net sales of the Tumi brand increased by $65.4 million, or 50.7 percent (+55.0 percent constant-currency), year-on-year;
  • Net sales of the American Tourister brand increased by $42.9 million, or 39.6 percent (+47.2 percent constant-currency) for the first quarter, compared to the 2022 first quarter;
  • Net sales of the Gregory brand increased by $4.2 million, or 27.7 percent (+34.9 percent constant-currency), for the first quarter, compared to the 2022 first quarter; and
  • High Sierra is part of an Other Brands segment where sales increased by $12.4 million, or 24.7 percent (+30.7 percent constant-currency), for the first quarter, compared to the 2022 first quarter.

Asia Region
The Group’s net sales in Asia increased by $143.4 million, or 77.2 percent (+89.4 percent constant-currency), for the first quarter, compared to the 2022 first quarter. There was a noticeable acceleration in the Group’s net sales recovery in Asia during the first quarter, where most of the region was still in heavy lockdowns during the first quarter of 2022 and restrictions have now been lifted.

Net sales in South Korea increased by $18.1 million, or 83.5 percent (+95.1 percent constant-currency), for the first quarter, compared to the same period in 2022. Net sales in Japan increased by $18.0 million, or 70.7 percent (+94.9 percent constant-currency), year-on-year. Net sales in India increased by $17.0 million, or 39.3 percent (+52.7 percent constant-currency), for the first quarter, compared to the same period in 2022. Total net sales reported for Hong Kong (which comprises net sales made in the domestic Hong Kong market, Macau and distributors in certain other Asian markets) increased by $14.3 million, or 91.7 percent (+91.9 percent constant-currency), year-on-year. Net sales in China increased by $13.0 million, or 28.5 percent (+39.1 percent constant-currency), year-on-year, due to the lifting of travel restrictions and the relaxing of social distancing measures. Net sales in Australia increased by $8.5 million, or 91.6 percent (+103.5 percent constant-currency), compared to the same period in 2022.

For the first quarter, net sales of the Samsonite brand in Asia increased by $67.0 million, or 88.0 percent (+100.8 percent constant-currency), compared to the same period in 2022. Net sales of the Tumi brand in Asia increased by $23.8 million, or 58.2 percent (+67.6 percent constant-currency), year-on-year. Net sales of the American Tourister brand in Asia increased by $44.2 million, or 92.5 percent (+105.9 percent constant-currency), compared to the 2022 first quarter.

North America Region
The Group’s net sales in North America increased by $68.6 million, or 31.8 percent (+32.3 percent constant-currency), for the first quarter, compared to the 2022 first quarter, as travel continued to rebound in both the United States and Canada. For the first quarter, net sales in the United States increased by $63.1 million, or 30.6 percent, year-on-year. For the first quarter, net sales in Canada increased by $5.5 million, or 59.0 percent (+69.8 percent constant-currency), year-on-year.

For the first quarter, net sales of the Samsonite brand in North America increased by $47.3 million, or 50.1 percent (+50.7 percent constant-currency), compared to the same period in 2022. Net sales of the Tumi brand in North America increased by $31.2 million, or 41.5 percent (+42.0 percent constant-currency), driven by strong performance in the Group’s company-operated retail stores and DTC e-commerce sales.

Net sales of the American Tourister brand in North America decreased by $10.2 million, or 32.1 percent (-32.0 percent constant-currency), due to a shift in timing of shipments to certain wholesale customers during the first quarter of 2022. Net sales of the Gregory brand were relatively consistent year-on-year.

Europe Region
The Group’s net sales in Europe increased by $53.4 million, or 42.2 percent (+52.1 percent constant-currency), for the first quarter, compared to the 2022 first quarter. On March 14, 2022, the Group suspended all commercial activities in Russia due to the armed conflict in Ukraine, and the Group subsequently completed the disposition of its Russian operations on July 1, 2022. When excluding the Russia Net Sales for both the first quarter of 2023 and 2022, the Group’s net sales in Europe increased by $61.1 million, or 51.4 percent (+62.0 percent constant-currency), year-on-year.

Net sales in Germany increased by $9.7 million, or 63.1 percent (+70.4 percent constant-currency), for the first quarter, compared to the 2022 first quarter. Net sales in Italy increased by $7.5 million, or 59.4 percent (+66.6 percent constant-currency), compared to the same period in 2022. Net sales in France increased by $5.6 million, or 47.1 percent (+53.8 percent constant-currency), compared to the 2022 first quarter. Net sales in the United Kingdom (net sales reported for the United Kingdom include net sales made in Ireland) increased by $4.6 million, or 39.0 percent (+52.7 percent constant-currency). Net sales in Spain increased by $3.9 million, or 34.4 percent (+40.5 percent constant-currency), year-on-year.

For the first quarter, net sales of the Samsonite brand in Europe increased by $35.6 million, or 42.2 percent (+52.9 percent constant-currency), compared to the same period in 2022. Net sales of the Tumi brand in Europe increased by $9.7 million, or 85.0 percent (+97.6 percent constant-currency), year-on-year. Net sales of the American Tourister brand in Europe increased by $7.3 million, or 32.1 percent (+39.1 percent constant-currency), compared to the 2022 first quarter.

Latin America Region
The Group’s net sales in Latin America increased by $13.1 million, or 29.0 percent (+33.9 percent constant-currency), for the first quarter, compared to the 2022 first quarter.

Net sales in Chile increased by $5.2 million, or 25.1 percent (+26.0 percent constant-currency), during the first quarter, compared to the same period in 2022. Net sales in Mexico increased by $4.4 million, or 45.0 percent (+32.0 percent constant-currency), year-on-year. Net sales in Brazil increased by $1.9 million, or 46.0 percent (+45.2 percent constant-currency), year-on-year.

For the first quarter, net sales of the Samsonite brand in Latin America increased by $3.6 million, or 22.8 percent (+30.8 percent constant-currency), compared to the same period in 2022. Net sales of the Tumi brand in Latin America increased by $0.6 million, or 46.2 percent (+38.2 percent constant-currency), year-on-year. Net sales of the American Tourister brand in Latin America increased by $1.6 million, or 26.8 percent (+29.3 percent constant-currency). Net sales of the Saxoline brand increased by $2.5 million, or 43.8 percent (+45.2 percent constant-currency), year-on-year. Net sales of the Xtrem brand increased by $4.3 million, or 30.4 percent (+36.8 percent constant-currency), compared to the same period in 2022.

Overall Group gross margin was 58.0 percent for the first quarter, compared to 54.7 percent for the same period in 2022. The 330 basis points increase in gross profit margin was driven mainly by Asia, the region with the highest gross profit margin, increasing its share of net sales, as well as changes in brand and channel net sales mix.

The Group reported an operating profit of $144.7 million for the first quarter, compared to $58.1 million for the same period in 2022, an improvement of $86.6 million, or 149.1 percent.

The Group recorded a profit before income tax of $106.4 million for the first quarter, compared to a profit before income tax of $29.2 million for the same period in 2022, an improvement of $77.2 million, or 264.5 percent.

Profit for the first quarter was $83.9 million compared to $21.2 million for the 2022 first quarter, an improvement of $62.7 million, or 295.3 percent.

Profit attributable to the equity holders was $73.8 million for the first quarter, compared to $16.4 million for the same period in 2022, an improvement of $57.3 million, or 348.4 percent. Basic and diluted earnings per share were 5.1 cents for the first quarter, compared to 1.1 cents for the 2022 first quarter.

Adjusted EBITDA improved by $83.2 million to $156.4 million for the first quarter, compared to $73.2 million for the 2022 first quarter. Adjusted EBITDA margin was 18.4 percent for the first quarter, compared to 12.8 percent for the 2022 first quarter, due to improved net sales and gross profit as well as disciplined expense management.

Photo courtesy Gregory