Samsonite gets sales boost from Tumi and tourism
Samsonite said that net sales rose in the first six months of 2018, propelled higher by high demand for its Tumi brand, and a thriving tourism sector. The company – which is the world’s largest luggage firm – said that positive trading conditions in the year thus far played a big part in its success, and that the travel and tourism markets was continuing to see “robust” figures. Unsurprisingly, the company’s share price surged on the back of the results.
Samsonite’s share price rose by more than 7% last week!
Source: Yahoo Finance
The company’s new CEO Kyle Gendreau, who recently succeeded Ramesh Tainwala, was keen to offer some context for the results. He said: “We aim to sustain this momentum as we head into the remainder of the year. That being said, the global geopolitical and macroeconomic outlook is more uncertain today than it was just a few months ago.”
Being more specific about how the company plans to do that, he added: “with the Tumi brand now fully integrated into the group, we are focussed on driving the brand’s global growth, especially in the Asian and European markets where it is currently under-penetrated.”
Gendreau’s predecessor stepped down just a few months ago, following an attack by U.S. short seller Blue Orca. Samsonite brushed this attack aside, but it appeared that Tainwala’s resumé included a doctorate he never earned. He left the company almost immediately after the revelations came to light.
The company said that Tumi sales rose by an incredible 16.6% from the first half of the previous year. Core Samsonite sales increased by 5% and American Tourister sales rose by 24.2%, also against the year-ago period.
Dominion holds Samsonite in its Global Trends Managed Fund
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