In This Article:
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Q4 Net Sales: $942 million, an increase of 1% in constant currency.
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Gross Margin: 60.2%, up 30 basis points from the prior year.
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Q4 Adjusted EBITDA: $195 million, with a margin of 20.7%, up 160 basis points year-over-year.
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Free Cash Flow for Q4: $135 million, up $3 million from Q4 2023.
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Full Year Free Cash Flow: $311 million, up $26 million from the prior year.
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Net Debt: $1.1 billion, after returning $308 million to shareholders.
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Store Openings: 67 new stores added in the past year.
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Revenue by Region: North America up 3.9%, Europe up 5.6%, Latin America up 14%, Asia down 6%.
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Brand Performance: Samsonite up 4.6% in Q4, Tumi up 4.4% in Q4, American Tourister down 6.9% in Q4.
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Full Year Gross Margin: 60%, up from 59.3% the previous year.
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Adjusted Net Income for the Year: $370 million, compared to $392 million the prior year.
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Full Year Revenue: Roughly flat compared to 2023.
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Inventory Reduction: $44 million reduction compared to 2023.
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Direct-to-Consumer Growth: 2.7% for the year.
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E-commerce Sales: Up close to 6% year-over-year.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Samsonite Group SA (SMSEY) achieved a record EBITDA margin of 20.7% in Q4 2024, up 160 basis points from the previous year.
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The company reported strong cash flow generation, with $135 million of free cash flow in Q4 2024, an increase of $3 million from Q4 2023.
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Samsonite Group SA (SMSEY) maintained a robust gross margin of 60.2% in Q4 2024, up 30 basis points from the prior year.
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The company successfully opened 67 new stores in 2024, demonstrating strategic expansion across key regions.
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Samsonite Group SA (SMSEY) reduced its net debt to $1.1 billion by the end of 2024, while returning $308 million to shareholders through dividends and share repurchases.
Negative Points
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Net sales in Asia were down 6% in Q4 2024, with India experiencing a significant decline of 27%.
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North America sales were impacted by timing shifts and consumer sentiment, resulting in a 1.2% decline for the year.
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The American Tourister brand faced challenges, particularly in India, leading to a 6.9% decline in Q4 2024.
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Samsonite Group SA (SMSEY) anticipates Q1 2025 sales to be down low to mid-single digits due to macroeconomic uncertainties.
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The company experienced a slight decrease in adjusted EBITDA for the full year 2024, at $683 million compared to $709 million in 2023.
Q & A Highlights
Q: Can you provide more granularity on your Q1 expectations by region, and is India showing any improvement? A: Europe is expected to remain steady with growth similar to Q4. Latin America also looks steady, despite a softer back-to-school season. Asia is showing an improving trend, with India expected to be slightly positive for Q1, a significant shift from last year's decline. China is also improving, with strong domestic travel. North America is seeing a negative trend, partly due to timing shifts, but overall, we expect Q1 to be down low to mid-single digits on a constant currency basis. - Kyle Gendreau, CEO