By Kimberley Kao
Samsonite shares slid after the world's biggest luggage company warned of near-term headwinds stemming from the Middle East conflict while reporting 2025 results.
The company's shares slid over 10% early Friday in Hong Kong, taking declines since the start of the conflict to more than 20%. The share slump underlines the headwinds facing the travel industry amid closed airspace and the grounding of flights.
Samsonite reported a 2.5% decline in 2025 net sales to $3.50 billion and a 16% drop in net profit to $289.0 million.
"Nearer-term, we expected a continuation of our net sales growth momentum during the first quarter of 2026 prior to the onset of the conflict in the Middle East," said Kyle Gendreau, Samsonite's chief executive.
"But as the conflict continues, we now expect the first quarter of 2026 to be approximately flat on a constant currency basis compared to the first quarter of 2025," Gendreau said.
"Inherent uncertainty about the duration and potential impact of the conflict makes it impractical to provide a specific outlook for the full year," Gendreau added.
The near-term earnings impact from the Middle East war is likely to be limited, though "the more meaningful risk lies in the second-order effects from higher oil prices that raise airfare and input costs, weighing on luggage demand and margins," said Ivan Su, senior equity analyst at Morningstar, in a recent note.
Samsonite typically orders materials about nine to 12 months in advance, which locks in pricing and provides a buffer against near-term price spikes, Su said. "A prolonged rise in oil prices could modestly pressure profitability," Su said.
The World Travel & Tourism Council recently estimated that the escalating conflict is already pressuring the travel and tourism sector across the Middle East by at least $600 million a day in international visitor spending, with disruptions to air travel affecting demand.
Samsonite also said board Chairman Timothy Charles Parker will be retiring, and named board member Jerome Squire Griffith as his successor.
Write to Kimberley Kao at kimberley.kao@wsj.com
(END) Dow Jones Newswires
March 20, 2026 00:03 ET (04:03 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
