Samsonite: robust results send share price up 3.5%
Global luggage kingpin Samsonite reported robust third-quarter earnings this week that sent its share price up by 3.5%. The company said that net sales, at constant currency, grew by 18.7% year on year. Minus Tumi, which Samsonite acquired last year, that becomes 11%. The company’s gross margin also improved from the year-ago quarter by 2.2%. As a result, net income rose against the same period in 2016 by 11.1%.
Samsonite’s share price is now up 50% year to date
SOURCE: Yahoo Finance
The company said that growth had been fairly consistent across regions, with CEO Ramesh Tainwala saying: “most of the markets have done well”. North America saw constant currency growth of “around 21.7%”, Asia saw 3.3% growth, Europe 6.8%, and Latin America 22.4%. All of these figures are measured against the same period in the previous year.
Mr. Tainwala also explained that the company is making progress in becoming less reliant on the travel industry, saying: “our strategy has been to drive the non-travel business to make the business more resilient, and become less dependent upon travel alone. So non-travel category growth was around 44.5%, and the non-travel contributes – makes up for around 38.8% of our year-to-date September sales compared to 34% year-to-date September 2016.”
The company said it expects “mid-single digit” growth for its Samsonite brand in the fourth quarter and into 2018, while its American Tourister brand will reverse negative trends from the first half and deliver a “high single-digit kind of a number into fourth quarter and also into 2018.”
Dominion holds Samsonite in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.