Samsonite wants to focus on women with a handbag brand
Samsonite’s chairman, Timothy Charles Parker, has told the press that the company is increasingly interested in adding a handbag brand to its lineup. The company is no stranger to acquisitions, but Parker says that – if it finds the right brand – this one could rival its $1.8 billion acquisition of Tumi.
Samsonite’s share price is up by 25% over the last year
SOURCE: Yahoo Finance
In an interview last week, Parker said that handbags would “fill a gap” as it repositions itself to offer more female-friendly products. At present, just 5% of the company’s products are designed specifically for women, but Parker says it’s hoping to increase that figure to 25% over time. He told the interviewer:
“Strategically, we are quite interested in handbags. We want to find a brand that fits with the rest of our portfolio of products. The one product we don’t have a big presence in is handbags.”
Luggage is a $19 billion market globally, and Samsonite, which reported record net sales last year, is the industry’s kingpin. According to Parker, while the company isn’t actively approaching potential acquisition targets, it would be willing to pay a premium for the right brand with an “international footprint.”
He said: “Most handbag brands are owned by luxury brands and few are open to selling. We are not afraid of paying a good price for a good business. We certainly have the firepower to do it. A good fit is key.”
Dominion holds Samsonite in its Global Trends Luxury Fund.
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