Samsonite’s 2016: ‘best results’ since going public
Earlier in the month, world-leading luggage maker Samsonite posted full-year results for 2016 which saw a 30% rise in profit, and led the company’s chairman to claim they were the ‘best results’ Samsonite had seen since going public in 2011. The company also saw a rise in net sales of 17.3%.
Samsonite’s share price is already up by 28% this year
SOURCE: Yahoo Finance
Describing what he called a “fantastic set of results” to CNBC, the company’s chairman, Tim Parker, said:
“I think, arguably, these are the best results that we’ve had since the flotation of the company in 2011, helped by the Tumi acquisition of course, but I think we saw a very, very solid second-half performance.”
Tumi, the American suitcase manufacturer that Samsonite picked up for $1.8 billion last year, is helping the company diversify its product offering across different price points. It has an impressive network of 2,000 distribution points across 75 countries, and is already positively contributing to Samsonite’s performance. Parker said:
“The synergies are coming through as planned – sales are on target, margins are up and we have been able to increase our investment in advertsising. The Tumi acquisition – we’re now about 5 months, 6 months, in – is looking very good indeed.”
He also discussed how Ecommerce could play out in the industry’s future. Initially surprised at people’s willingness to buy luggage online, he speculated that “often people don’t want the hassle of pushing what can be quite a large object home from a shop.” Parker sees Ecommerce as potentially contributing as much as 20% - 25% of Samsonite’s overall business in the next few years.
Dominion holds Samsonite in its Global Trends Luxury Fund.
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