During the nine months ended September 30, 2024, the Group's net sales in the DTC channel increased by 2.8%(1) to US$1,023.1 million, year-on year. The DTC channel contributed 38.7% of net sales in the first nine months of 2024, compared to 37.7% for the corresponding period in 2023. During the nine months ended September 30, 2024, the Group added 78 company-operated retail stores, partially offset by the permanent closure of 26 company-operated retail stores, resulting in a net addition of 52 company-operated retail stores during the first nine months of 2024, compared to a net addition of 36 company-operated retail stores during the first nine months of 2023. The total number of company-operated retail stores was 1,104 as of September 30, 2024, compared to 1,021 as of September 30, 2023.
The Group achieved gross profit margin of 59.9% for the nine months ended September 30, 2024, an increase of 80 basis points compared to the 59.1% for the same period in 2023, driven by an increased share of total net sales from the Group's DTC channel and continued discipline with respect to promotional discounts, partially offset by the decrease in net sales from the higher-margin Asia region and Tumi brand. Gross profit decreased by 1.8% year-on-year to US$1,584.9 million for the nine months ended September 30, 2024, from US$1,614.5 million for the first nine months of 2023 due to the decrease in net sales, partially offset by higher gross profit margin.
The Group spent US$173.1 million on marketing during the nine months ended September 30, 2024, compared to US$173.6 million for the nine months ended September 30, 2023, a decrease of US$0.5 million, or 0.3%, year-on-year. As a percentage of net sales, marketing expenses were relatively stable at 6.5% for the nine months ended September 30, 2024, compared to 6.4% for the first nine months of 2023.
Due to disciplined expense management, fixed SG&A expenses increased by US$18.2 million to US$641.1 million for the nine months ended September 30, 2024, from US$623.0 million for the corresponding period in 2023, despite the total number of company-operated retail stores increasing by 83 year-on-year. However, due to the year-on-year reduction in net sales, fixed SG&A expenses amounted to 24.2% of net sales in the first nine months of 2024 compared to 22.8% of net sales during the corresponding period in 2023.
For the nine months ended September 30, 2024, Samsonite's Adjusted EBITDA margin(2) decreased by 90 basis points to 18.4% due to the decrease in net sales and gross profit, and higher marketing expenses as a percentage of net sales, year-on-year. Adjusted EBITDA(6) decreased by 7.6% to US$488.1 million, and Adjusted Net Income(7) decreased by 14.5% to US$253.7 million for the first nine months of 2024 versus the corresponding period in 2023.
2024 Third Quarter Results -- Conference Call for Analysts and Investors:
Date: Wednesday, November 13, 2024 Time: 09:00 New York / 14:00 London / 22:00 Hong Kong Webcast https://media.website.wisdomir.com/live/land/00311/ Link: Dial-in https://corporate.samsonite.com/on/demandware.static/-/Sites-InvestorRelations-Library/default/dw2748cb7d/PDF/announcements/2024/E_Samsonite_3Q2024%20Results%20Date%2 Details: 0&%20Conference%20Call%20(FINAL%202024-11-04).pdf
About Samsonite
With a heritage dating back more than 110 years, Samsonite International S.A. ("Samsonite" or the "Company", together with its consolidated subsidiaries the "Group"), is a leader in the global lifestyle bag industry and is the world's best-known and largest travel luggage company. The Group is principally engaged in the design, manufacture, sourcing and distribution of luggage, business and computer bags, outdoor and casual bags and travel accessories throughout the world, primarily under the Samsonite$(R)$ , Tumi(R) , American Tourister(R) , Gregory(R) , High Sierra(R) , Kamiliant(R) , Lipault(R) and Hartmann(R) brand names as well as other owned and licensed brand names. The Company's ordinary shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited ("SEHK").
For more information, please contact:
United States: Samsonite Hong Kong: Samsonite International S.A. -- Hong Kong
LLC Tel: +1 508 851 Branch Tel: +852 2422 2611
1586
Alvin Concepcion Email: William Yue Email: Helena Sau
Alvin.Concepcion@samsoni William.Yue@samsonite.com Email:
te.com Helena.Sau@samsonite.com
United States -- Joele Frank, Wilkinson Brimmer Katcher
Tel: +1 212 355 4449
Michael Freitag / Tim Ragones / Ed Trissel
Email: Samsonite-JF@joelefrank.com
Notes:
________________________________
1 Results stated on a constant currency basis, a non-International Financial
Reporting Standards ("IFRS") Accounting Standards measure, are calculated
by applying the average exchange rate of the same period in the year under
comparison to current period local currency results.
2 Adjusted EBITDA margin, a non-IFRS measure, is calculated by dividing
adjusted earnings before interest, taxes, depreciation and amortization of
intangible assets ("Adjusted EBITDA") by net sales.
3 Free Cash Flow, a non-IFRS measure, is defined as net cash generated from
(used in) operating activities less (i) purchases of property, plant and
equipment and software ("total capital expenditures") and (ii) principal
payments on lease liabilities (each as set forth on the condensed
consolidated statements of cash flows).
4 Total liquidity is calculated as the sum of cash and cash equivalents per
the condensed consolidated statements of financial position plus available
capacity under the revolving credit facility.
5 The total net leverage ratio is calculated by dividing total consolidated
net debt minus the aggregate amount of unrestricted cash by the
consolidated Adjusted EBITDA for the trailing four fiscal quarters on a
pro forma basis as defined in the credit agreement.
6 Adjusted EBITDA, a non-IFRS measure, eliminates the effect of a number of
costs, charges and credits and certain other non-cash charges. Adjusted
EBITDA includes the lease interest and amortization expense under IFRS 16,
Leases ("IFRS 16") to account for operational rent expenses. The Group
believes these measures provide additional information that is useful in
gaining a more complete understanding of its operational performance and
of the underlying trends of its business.
7 Adjusted Net Income, a non-IFRS measure, eliminates the effect of a number
of costs, charges and credits and certain other non-cash charges, along
with their respective tax effects, that impact the Group's reported profit
attributable to the equity holders for the period, which the Group
believes helps to give securities analysts, investors and other interested
parties a better understanding of the Group's underlying financial
performance.
8 As of September 30, 2024, the Group had US$682.3 million in cash and cash
equivalents and outstanding financial debt of US$1,830.4 million
(excluding deferred financing costs of US$8.5 million), resulting in a net
debt position of US$1,148.1 million. As of December 31, 2023, the Group
had US$716.6 million in cash and cash equivalents and outstanding
financial debt of US$1,824.0 million (excluding deferred financing costs
of US$17.0 million), resulting in a net debt position of US$1,107.4
million.
9 Effective since the third quarter of 2024, the Group voluntarily made a
change in accounting policy related to the recognition of the subsequent
changes in fair value of the put option financial liabilities associated
with the non-controlling interests in certain of the Group's majority
owned subsidiaries. See Change in Accounting Policy in the Group's
Quarterly Report for further discussion on this voluntary change in
accounting policy.
10 Adjusted basic and diluted earnings per share, both non-IFRS measures, are
calculated by dividing Adjusted Net Income by the weighted average number
of shares used in the basic and diluted earnings per share calculations,
respectively.
11 The geographic location of the Group's net sales generally reflects the
country/territory from which its products were sold and does not
necessarily indicate the country/territory in which its end customers were
actually located.
12 Net sales reported for Hong Kong include net sales made domestically, net
sales made in Macau, as well as net sales to distributors in certain other
Asian markets.
13 Net sales reported for Singapore include net sales made domestically and
net sales to distributors in certain other Asian markets.
14 Net sales reported for the United Kingdom include net sales made in
Ireland.
15 Net sales in Belgium were US$6.6 million and US$6.9 million for the three
months ended September 30, 2024, and September 30, 2023, respectively, a
decrease of US$0.3 million, or 4.2% (-6.0% constant currency). Remaining
sales consisted of direct shipments to distributors, customers and agents
in other European countries, including e-commerce.
16 "Other" includes certain other non-core brands owned by the Group, such as
Gregory, High Sierra, Kamiliant, Lipault, Hartmann, Saxoline and Secret,
as well as certain third-party brands.
17 The non-travel product category includes business, casual, accessories and
other products.
18 "Other" primarily consists of licensing revenue.
19 For the three months ended September 30, 2024, the Group spent US$18.6
million and US$1.9 million on property, plant and equipment and software
purchases, respectively. For the three months ended September 30, 2023,
the Group spent US$20.9 million and US$2.5 million on property, plant and
equipment and software purchases, respectively.
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