In This Article:
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Net Sales: $878 million, a decrease of 6.8% compared to Q3 last year, but up 21% from 2019.
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Gross Margin: 59.3%, down 30 basis points from Q3 last year.
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Adjusted EBITDA: $155 million, representing a margin of 17.6%, down 270 basis points from last year.
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Free Cash Flow: $94 million, up $5 million from Q3 last year.
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Net Debt: $1.1 billion, reduced from $1.39 billion as of September last year.
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Direct-to-Consumer Sales: Up 3% year-to-date through September.
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Store Openings: 83 net new stores since September of last year.
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Regional Performance: Asia down 2.7%, North America down 3%, Europe up 2.3%, Latin America up 18.2% year-to-date.
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Brand Performance: Samsonite up 40% from 2019, Tumi up 16% from 2019, American Tourister down 15% this year.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Samsonite International SA (SMSEY) maintained a strong gross margin of 59.3% despite a challenging sales environment.
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The company reported a robust free cash flow of $94 million, an increase of $5 million from Q3 of last year.
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Samsonite's brand showed resilience, particularly in North America, with a 3.5% increase in sales during Q3.
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The company continues to expand its direct-to-consumer strategy, with e-commerce sales up 7.3% year-to-date.
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Samsonite International SA (SMSEY) has made significant progress in its sustainability initiatives, aiming to reduce Scope 3 emissions by 52% by 2030.
Negative Points
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Net sales decreased by 6.8% compared to the exceptionally strong Q3 of the previous year.
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The Tumi brand faced significant challenges, particularly in North America and Asia, with a decline in sales.
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The company experienced a 270 basis point drop in adjusted EBITDA margin due to increased SG&A expenses and competitive pressures.
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Sales in China decreased by 14% due to softened consumer sentiment and macroeconomic challenges.
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The Indian market faced intense competitive pressures, leading to a 24% decline in sales for the quarter.
Q & A Highlights
Q: For 2024, you expect sales for the full year to be flat. Does this imply slightly higher than mid-single-digit growth for Q4? Can you provide insights on market performance, particularly in China? A: Yes, your math is correct. We expect single-digit growth for Q4, which is an improvement over Q3. All regions are performing better, with China showing improvement due to economic stimulus. However, India remains under pressure. In China, we observed a trading down in consumer preferences, but Tumi is still performing relatively well.