Samsonite outperforms in first half
Global luggage market leader Samsonite is seeing success with its mission to bring top quality bags and carryalls across the world. The company saw underlying constant currency growth of 7.5% in the first half of 2017.
Chairman Tim Parker said that Samsonite was “extremely pleased” with this figure, and noted that – thanks in part to the addition of Tumi, which has influenced figures for the last six months – the numbers “look fantastic”.
Those numbers include a 32% rise in net sales and a 27% rise in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation). Parker also noted that the results set “a record for the company again.”
Samsonite’s share price is up by 42% in 2017 so far!
Source: Yahoo Finance
Samsonite’s CEO Ramesh Tainwala, discussed the company’s growth in further detail on an earnings call with investors. He said that Europe grew 11.5% (“without Tumi”), North America grew by 7.4%, Asia saw an increase of 3.8%, and Latin America 19.4%.
However, Mr. Tainwala was also eager to discuss the acquisition of eBags, and the importance of a robust digital strategy for Samsonite going forward. He said:
“Definitely, online is one business which we are most excited about. It's not only about the online business itself but it's also about online communication. Very often, we find that a journey of the consumer is starting online before he's really showing up in our retail stores itself. And we have been feeling the need of -- that we're having a knowledge gap in our understanding of the digital world. eBags will give us that much-needed boost to get ahead of the curve in terms of our understanding of this world of the more digitalized world.”
Samsonite reiterated an expectation of accelerating organic growth for the rest of the year, and shares rose by as much as 5% on the back of the news.
Dominion holds Samsonite in its Global Trends Luxury Fund.
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