Samsonite Group S.A., the parent of Gregory, High Sierra and several luggage brands, reported sales on a constant currency basis declined 1.7 percent in the second quarter and 0.7 percent in the half, dragged down by declines in North America, the Middle East and India. The Hong Kong-based company also said it has agreed to acquire BÉIS, the travel brand based in El Segundo, California.

Samsonite also owns American Tourister, Tumi, Samsonite, Hartmann, Lipault, Kamiliant and eBags.

Commenting on Samsonite Group’s results, Kyle Gendreau, CEO, said, “In the first half of 2026, we made strong progress on our key growth pillars, which helped drive resilient underlying performance in a challenging demand environment resulting from softer travel demand and weaker consumer confidence related to overall inflationary pressures due to the conflict in the Middle East. Although there is significant uncertainty about the impact of the conflict over the remainder of the year, we remain focused on fully leveraging our advantages in product innovation, market leadership, platform, and scale to continue to drive profitable net sales.”

“Achievements on key growth pillars

  • Amplify and Elevate Awareness of Our Iconic, Consumer-Centric Brands: In the first half of 2026, we increased our marketing investment by 60 basis points year-over-year to 6.5 percent of net sales, enhancing brand 2 awareness through richer storytelling, deeper consumer engagement, and continued investment behind our iconic brands.
  • Be the Clear Winner in Digital to Further Support Multi-channel Growth: In the first half of 2026, DTC e-commerce increased by 6.4 percent year-over-year, led by double-digit constant currency growth in Asia and Latin America. Digital channels remain an increasingly important component of our business, with total e-commerce net sales (combined DTC e-commerce net sales and wholesale net sales to e-retailers) accounting for 20.7 percent of net sales in the first half of 2026, up 60 basis points from the first half of 2025.
  • Seize Whitespace Opportunities in Lifestyle Bags: In the first half of 2026, lifestyle bags category net sales increased by 2.4 percent year-over-year, driven by strong net sales growth of lifestyle bags in our Samsonite, Gregory, and TUMI brands. Penetration of lifestyle bags category net sales increased to 37.4 percent of sales in the first half of 2026, up 120 basis points from the first half of 2025.
  • Continue to Win With Products That Resonate Globally: We successfully launched innovative products with global appeal, including Samsonite Nexis, TumiAlpha 4, and new Samsonite Paralux colorways.”

Gendreau added, “These advancements enabled us to drive resilient underlying performance in the first half of 2026. Excluding the Middle East and India, the markets most affected by the conflict in the Middle East to date, first half 2026 net sales were largely stable, up 3.1 percent, (+0.7 percent on a constant currency basis) year-over-year. Although we experienced inflationary cost pressures due in part to higher oil prices, we successfully leveraged our competitive advantages in scale, deep relationships with suppliers, and experienced teams, supported by favorable geographic and channel mix, to deliver year-over-year gross margin expansion. Our adjusted EBITDA margin reflected continued investment in strategic growth initiatives, while maintaining healthy profitability.” “Our balance sheet remained strong, and through rigorous financial management our adjusted free cash flow increased by US$73.5 million year-over-year to US$85.0 million in the first half of 2026. We paid a US$140 million cash dividend to shareholders on July 15, 2026, and we completed a US$50 million share repurchase in the second quarter of 2026, demonstrating our disciplined approach to capital allocation and commitment to return cash to shareholders.” “We are confident in the long-term tailwinds supporting our business, including continued growth in travel demand, as well as our ability to execute on our strategic priorities to accelerate growth.”

Comments on BÉIS Acquisition
Gendreau said, “We have previously stated that we are continuously evaluating strategic acquisition opportunities that align with our long-term value creation goals. We are pleased to announce that we entered into a definitive agreement on August 12 to acquire BÉIS, LLC. BÉIS is a fast-growing, digitally native lifestyle and travel brand that expands our reach among younger, predominantly female consumers, increases our exposure to faster-growing lifestyle bag categories, and strengthens our digital capabilities. This transaction aligns closely with our key growth priorities and BÉIS is spearheaded by an impressive leadership team and has cultivated a loyal customer following through differentiated products, authentic storytelling and a best-in-class digital-first business model. We see significant opportunities to accelerate BÉIS’ long-term growth, while preserving the entrepreneurship, creativity, and strong brand identity that have fueled the enterprise’s success since its founding. We’re excited to welcome BÉIS into our family of innovative and iconic brands.” The transaction is expected to close in the fourth quarter of 2026, subject to the receipt of regulatory approvals and other customary closing conditions.

Second Quarter Results
Net sales for the three months ended June 30, 2026 were US$851.5 million, down 1.6 percent (negative 1.7 percent on a constant currency basis) year-over-year, as the company navigated the full impact of headwinds from the conflict in the Middle East, including softening travel and consumer confidence trends, particularly in the U.S. Excluding net sales in the Middle East and India, net sales for the second quarter of 2026 increased by 0.6 percent but decreased by 0.2 percent on a constant currency basis year-over-year.

By region, the company continued to deliver year-over-year net sales growth in Asia (+0.9 percent and +6.4 percent when excluding net sales in the Middle East and India) and Latin America (+1.2 percent), while net sales in Europe remained stable (-0.1 percent) in the second quarter of 2026 year-over-year. Net sales in North America decreased by 5.9 percent year-over-year in the second quarter of 2026 reflecting the full impact of inflationary pressures due 3 to the conflict in the Middle East, which has resulted in softer travel demand and weaker consumer confidence. These headwinds also resulted in more cautious purchasing by key wholesale customers.

By brand, Samsonite and Tumi net sales decreased by 1.4 percent and 1.3 percent, respectively, in the second quarter of 2026 compared to the same period in 2025. American Tourister net sales were stable (-0.1 percent), with strong quarterly growth in North America and modest growth in Europe offset by declines in Asia and Latin America. Excluding net sales in the Middle East and India, net sales of the Samsonite and Tumi brands decreased by 1.0 percent and 0.4 percent, respectively, while American Tourister net sales increased by 6.2 percent in the second quarter of 2026, year-over-year.

On an as reported basis, gross profit margin was 62.0 percent for the second quarter of 2026 compared to 59.0 percent for the same period in 2025. Excluding the benefit from tariff refunds received in June 2026 following the U.S. Supreme Court’s ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act, second quarter 2026 gross profit margin was 60.0 percent, up 100 basis points year-over-year, supported by favorable geographic and channel mix. The company remained focused on disciplined cost management in a challenging environment, while continuing to invest in its long-term growth priorities.

Marketing expenses increased by 150 basis points to 7.2 percent of net sales in the second quarter of 2026 compared to 5.7 percent of net sales in the first quarter of 2026, as the company invested in marketing to elevate its iconic brands, deepen consumer engagement, and enhance storytelling.

As a percentage of net sales, distribution expenses decreased by 70 basis points to 33.6 percent of net sales for the second quarter of 2026 versus 34.3 percent of net sales for the first quarter of 2026, while general and administrative expenses were down 50 basis points to 7.0 percent of net sales in the second quarter of 2026 versus 7.5 percent of net sales in the first quarter of 2026.

On an as reported basis, adjusted EBITDA margin was 16.1 percent in the second quarter of 2026. Excluding the benefit from U.S. tariff refunds, adjusted EBITDA margin for the second quarter of 2026 was 14.1 percent, up 100 basis points from 13.1 percent for the first quarter of 2026, as gross margin expansion and greater operating leverage more than offset increased investment in marketing and strategic growth initiatives.

Adjusted net income decreased by US$6.4 million to US$65.0 million for the three months ended June 30, 2026 compared to US$71.4 million for the same period in 2025. Adjusted basic and diluted earnings per share were US$0.047 and US$0.047 per share, respectively, for the three months ended June 30, 2026 compared to US$0.052 and US$0.051 per share, respectively, for the second quarter of 2025.

First Half 2026 Results
Net sales for the six months ended June 30, 2026 were US$1,680.6 million, an increase of 1.1 percent but a decrease of 0.7 percent on a constant currency basis year-over-year. Excluding net sales in the Middle East and India, net sales for the first half of 2026 increased by 3.1 percent (+0.7 percent on a constant currency basis) year-over-year.

By region, the company continued to achieve net sales growth in Asia (+1.1 percent and +5.7 percent when excluding net sales in the Middle East and India) and Latin America (+3.1 percent) while net sales in Europe remained stable (+0.3 percent) in the first half of 2026, year-over-year. Net sales in North America decreased by 3.9 percent in the first half of 2026, year-over-year, reflecting the impact of inflationary pressures due to the conflict in the Middle East, which has resulted in softer travel demand and weaker consumer confidence. These headwinds also resulted in more cautious purchasing by key wholesale customers.

The performance of the company’s core brands reflected underlying strength despite headwinds from the conflict in the Middle East. Net sales of the Samsonite, TUMI and American Tourister brands were relatively stable, down by 0.1 percent, 0.5 percent and 0.8 percent, respectively, in the first half of 2026 compared to the same period in 2025. Excluding net sales in the Middle East and India, Samsonite and TUMI net sales were stable, up 0.1 percent and 0.3 percent, respectively, while American Tourister net sales increased by 5.1 percent in the first half of 2026, yearover-year, driven by strong growth in North America.

DTC e-commerce continued to be the fastest growing channel in the first half of 2026, with net sales increasing by 6.4 percent, led by double-digit constant currency net sales growth in Asia and Latin America. Total ecommerce net sales accounted for 20.7 percent of net sales in the first half of 2026 compared to 20.1 percent in the first 4 half of 2025. Digital channels remain an increasingly important component of the company’s business, with DTC e-commerce accounting for 12.3 percent of net sales in the first half of 2026 versus 11.3 percent of net sales in the first half of 2025.

The lifestyle bags category continued to outperform, with net sales growing by 2.4 percent year-over-year to account for 37.4 percent of net sales in the first half of 2026 versus 36.2 percent of net sales in the first half of 2025, driven by strong net sales growth of lifestyle bags in our Samsonite, Gregory and TUMI brands.

On an as reported basis, gross profit margin was 60.5 percent for the first half of 2026 compared to 59.2 percent for the same period in 2025. Excluding the benefit from U.S. tariff refunds, first half 2026 gross profit margin expanded by 30 basis points year-over-year to 59.5 percent, reflecting favorable net sales mix and disciplined execution across the business. Operating expenses were managed with rigor as the company focused on investing in marketing, digital, and selective store openings, which management believes are key to securing long-term brand growth opportunities.

Marketing expenses increased by 60 basis points to 6.5 percent of net sales in the first half of 2026, up 60 basis points from 5.9 percent of net sales in the first half of 2025, as the company continued to invest behind its iconic brands to support long-term growth.

Distribution expenses increased by 200 basis points to 33.9 percent of net sales for the first half of 2026 compared to 31.9 percent of net sales in the first half of 2025. Results reflected unfavorable operating leverage in a softer demand environment, together with the cumulative impact of industry-wide inflation across many categories, including wage and rent increases, higher outbound freight expenses, and selective new store openings to increase our brand presence.

General and administrative increased by 30 basis points to 7.2 percent of net sales in the first half of 2026 compared to 6.9 percent of net sales in the first half of 2025 due mainly to inflationary increases. Adjusted EBITDA margin was 14.6 percent for the six months ended June 30, 2026 compared to 16.2 percent for the first half of 2025. Excluding the benefit from U.S. tariff refunds, adjusted EBITDA margin was 13.7 percent for the first half of 2026, reflecting continued investment in marketing and strategic growth initiatives, while maintaining healthy profitability.

Adjusted net income decreased by US$21.9 million to US$101.5 million for the six months ended June 30, 2026 compared to US$123.4 million for the same period in 2025. Adjusted basic and diluted earnings per share were US$0.073 and US$0.073 per share, respectively, for the six months ended June 30, 2026 compared to US$0.089 and US$0.088 per share, respectively, for the first half of 2025.

Balance Sheet, Adjusted Free Cash Flow, and Shareholder Returns
Management believes the company’s balance sheet remains healthy and the company is well positioned to capitalize on anticipated strong long-term growth opportunities. Net debt was US$1,069.0 million as of June 30, 2026, a reduction of US$29.9 million from December 31, 2025. In addition, the company continued to maintain strong liquidity of approximately US$1.5 billion as of June 30, 2026.

Adjusted free cash flow improved to US$57.7 million for the second quarter of 2026 compared to US$52.7 million in the second quarter of 2025. This brought adjusted free cash flow to US$85.0 million for the six months ended June 30, 2026, an improvement of US$73.5 million compared to US$11.5 million in the first half of 2025, primarily driven by favorable changes in net working capital year-over-year.

Outlook
Commenting on the outlook, Gendreau said, “We remain confident in our ability to execute on our strategic priorities to accelerate long-term growth, supported by the long-term tailwinds in our industry, including continued growth in travel demand.

“Nearer-term, we expect the constant currency net sales growth rate in the third quarter of 2026 to remain stable and in a similar range relative to the second quarter of 2026. Currently, the overall inflationary pressures related to the conflict in the Middle East have contributed to softening trends in travel and consumer confidence, as well as more cautious inventory management by wholesale customers, particularly in the U.S., which are factors that have impacted our net sales. That said, we expect continued progress on our key growth pillars to enable us to navigate these pressures and continue to drive resilient underlying net sales.

“We believe that our scale advantages, supplier relationships, and ability to effectively navigate uncertain macroeconomic conditions and inflationary pressures through our mitigation actions, will continue to enable us to maintain our strong gross margin profile in 2026 and beyond.

“We also remain focused on disciplined cost management in a challenging environment, while continuing to invest in our long-term growth priorities. In particular, we are focused on investing in marketing to secure long-term brand growth opportunities, and we continue to expect marketing spend to increase as a percentage of net sales to approximately 6.5 percent in 2026, compared to 5.9 percent of net sales in 2025.

“Relative to the second quarter of 2026 and excluding the benefit of U.S. tariff refunds, we expect adjusted EBITDA margin to continue to improve over the course of the year as we enter seasonally stronger net sales periods and continue to take action to mitigate cost pressures.” “Furthermore, we remain focused on a disciplined approach to capital allocation with a commitment to return cash to shareholders, including through dividends and opportunistic share repurchases.”

Update on the Potential Dual Listing in the United States
Gendreau commented, “We continue to prepare for a potential dual listing of the company’s securities in the U.S. Our Board of Directors and management firmly believe a dual listing will enhance shareholder value creation over time. We continue to closely monitor macroeconomic and market conditions, and in light of our view for improvement in our business, we intend to complete our dual listing in 2026 if conditions improve.”

Image courtesy Gregory