Strong high-end Tumi, tourism growth boost Samsonite net sales

HONG KONG — Luggage maker Samsonite International SA posted a 16.6% growth in firsthalf net sales, helped by strong performance of its high-end Tumi brand, sending its shares up 8.5% on Thursday.

The world’s largest luggage firm said global trading conditions in 2018 have so far been favorable, and the travel and tourism market continues to enjoy robust growth.

“We aim to sustain this momentum as we head into the remainder of the year,” Chief Executive Officer Kyle Gendreau said in a statement late on Wednesday.

“That being said, the global geopolitical and macroeconomic outlook is more uncertain today than it was just a few months ago.”

The Luxembourg-headquartered company said its first-half net sales rose to $1.85 billion from $1.59 billion a year earlier.

Net sales of its Tumi brand increased by 16.6% year on year, driven by strong growth in North America, Asia and Europe. Core brand Samsonite sales rose five percent, while American Tourister sales grew 24.2%.

“With the Tumi brand now fully integrated into the group, we are focused on driving the brand’s global growth, especially in the Asian and European markets where it is currently under-penetrated,” Mr. Gendreau said.

The company saw its firsthalf net profit falling 18.7% to $67.8 million, including noncash write-off of deferred financing costs, from $83.4-million profit a year ago.

However, excluding the noncash write off, profit attributable to equity holders increased by $24 million, or 28.8%, it said.

Gross profit margin increased to 56.5% for the six months period, from 55.3% the same period a year ago.

Shares of Samsonite, which have been under pressure since May after a short-seller attacked its accounting practices, rose as much as 8.5% to HK$31.80, their highest since July 30.

Samsonite’s former CEO Ramesh Tainwala resigned less than a week after the attack that involved entities owned by his family, and was taken over by finance chief Mr. Gendreau. —