Samsonite International S.A. reported sales in the first quarter ended March 31 at Gregory reached $15.1 million against $15.8 million a year ago, a decline of 4.0 percent on a reported basis. Sales were flat on a currency-neutral basis.
Companywide, sales were $573.6 million, an increase of 67.7 percent compared to the $354.7 million recorded during the first quarter of 2021. When excluding the net sales of Speck3 for the first quarter of 2021, the Group’s net sales increased by 74.9 percent2, 3, year-on-year, during the first quarter of 2022.
The Hong Kong-based firm’s other brands include Samsonite, Tumi, American Tourister, Gregory, High Sierra, Kamiliant, ebags, Lipault, and Hartmann.
Commenting on the results, Kyle Gendreau, CEO, said, “We achieved a great start to 2022. The group’s net sales continued to improve, rising to $573.6 million for the three months ended March 31, 2022, an increase of 74.9 percent year on year. Our core brands Samsonite, Tumi and American Tourister all attained strong year-on-year net sales gains, rising by 87.9 percent, 61.1 percent and 89.6 percent, respectively. Compared to the first quarter of 2019, net sales in the first quarter of 2022 were lower by 25.2 percent, reflecting steady progress vers the 28.0 percent, a decline recorded in the fourth quarter of 2021 when compared to the same period in 2019, despite the impact from a resurgence of COVID-19 cases and the resultant reinstatement of lockdowns in certain markets, particularly in Asia, as well as slower stock replenishment due to shipping delays in North America.”
“We increased our investment in marketing to drive net sales growth while remaining vigilant in managing our fixed selling, general and administrative (SG&A) expenses. Marketing expenses made up 4.2 percent of net sales in the first quarter of 2022, 120 basis points higher than the 3.0 percent during the same period in 2021 but 170 basis points lower than the 5.9 percent during the first quarter of 2019. Meanwhile, fixed SG&A expenses as a percentage of net sales were 27.8 percent for the first quarter of 2022, compared to 41.4 percent and 29.7 percent for the first quarter of 2021 and 2019, respectively.”
“As a result, first-quarter 2022 Adjusted EBITDA improved by $101.7 million to earnings of $73.2 million compared to a loss of $28.5 million for the same period in 2021, and $11.4 million below the Adjusted EBITDA of $84.6 million recorded in the first quarter of 2019. More notably, our Adjusted EBITDA margin increased to 12.8 percent, a significant improvement from the negative 8.0 percent in the first quarter of 2021 and 260 basis points higher compared to the 10.2 percent for the first quarter of 2019, despite net sales in the first quarter of 2022 being 25.2 percent, lower than the first quarter of 2019.”
The Group achieved an Adjusted Net Income of $23.3 million for the three months ended March 31, 2022, a significant improvement compared to the Adjusted Net Loss of $67.4 million during the same period in 2021, and $4.0 million below the $27.3 million Adjusted Net Income recorded in the first quarter of 2019.
Gendreau continued, “We also remain focused on reducing our debt. As sales and profitability continued to improve, we voluntarily prepaid an additional $200.0 million of outstanding borrowings under our Amended Senior Credit Facilities during the first quarter of 2022, following debt prepayments totaling $370.0 million in 2021. With approximately $1.4 billion in liquidity as of March 31, 2022, Samsonite is well-positioned to continue investing in the business to drive long-term growth.”
Photo courtesy Gregory
