Samsonite International S.A. Announces Final Results for the Year Ended December 31, 2023
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Consolidated net sales increased by
Gross profit margin and Adjusted EBITDA margin3 expanded significantly in 2023, driven by increased net sales contribution from higher-margin
Continued to deleverage balance sheet, driven by strong profit growth and Free Cash Flow4 with net leverage ratio5 at lowest level since 2016 acquisition of Tumi
In this press release, certain financial results for the year ended December 31, 2023, are compared to both the year ended December 31, 2022, and the year ended December 31, 2019. Comparisons to the year ended December 31, 2019, are provided because it is the most recent comparable year during which the Company's results were not affected by COVID-19.
Overview
Commenting on the results, Mr. Kyle Gendreau, Chief Executive Officer, said, "2023 marked another impressive year for Samsonite. We achieved outstanding results, and we are well positioned to continue to outpace the market backed by our portfolio of leading brands, unrivalled global sourcing and distribution infrastructure, and ability to invest in product innovation and marketing. Supported by strategic investments in marketing, we successfully capitalized on the continued recovery and growth in leisure and business travel worldwide, particularly in
"During 2023 the Group registered strong double-digit net sales growth year-on-year, while its gross profit margin and Adjusted EBITDA margin3 both reached record highs, reflecting our efficient cost structure and the increased net sales contribution from our higher-margin
"We intensified our efforts to embed sustainability into the business in 2023. Among other accomplishments, we increased the share of Samsonite's net sales that came from products made at least in part from recycled materials to approximately
Mr. Gendreau continued, "Looking to 2024, global travel and tourism growth is expected to remain healthy.
"We will continue to invest in our core brands in 2024, focusing on product innovation, sustainability initiatives and further enhancements to our global retail store network, all supported by increased investment in marketing. We are targeting 2024 marketing spend of approximately
Mr. Gendreau concluded, "We will continue to be vigilant in limiting promotional discounts to sustain our improved gross profit margin. We will also maintain discipline in managing expenses, especially our fixed SG&A expenses, to drive operating leverage and deliver sustained bottom-line growth. At the same time, we will maintain focus on cash management to sustain strong Free Cash Flow4 generation, further enhancing Samsonite's flexibility in capital allocation to continue to deleverage our balance sheet, invest in organic growth, and return cash to our shareholders."
Table 1: Key Financial Highlights for the Three Months Ended December 31, 2023 | ||||
Expressed in US$ millions, except per share data | Three months | Three months | Percentage increase (decrease) 2023 vs. 2022 | Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
Net sales | 948.5 | 818.5 | 15.9 % | 15.8 % |
Gross profit | 568.3 | 462.9 | 22.8 % | 22.9 % |
Gross profit margin | 59.9 % | 56.5 % | ||
Operating profit8 | 248.9 | 210.5 | 18.3 % | 18.6 % |
Operating profit excluding total non-cash impairment reversals and restructuring (reversals) charges8, 9 | 164.6 | 128.0 | 28.6 % | 29.1 % |
Profit attributable to the equity holders | 149.2 | 198.2 | (24.8) % | (27.7) % |
Adjusted Net Income10 | 95.8 | 147.8 | (35.2) % | (39.2) % |
Adjusted EBITDA6 | 181.0 | 142.5 | 27.0 % | 27.4 % |
Adjusted EBITDA margin3 | 19.1 % | 17.4 % | ||
Basic earnings per share –Expressed in US$ per share | 0.103 | 0.138 | (25.2) % | (28.1) % |
Diluted earnings per share –Expressed in US$ per share | 0.102 | 0.137 | (25.6) % | (28.6) % |
Adjusted basic earnings per share11 – Expressed in US$ per share | 0.066 | 0.103 | (35.6) % | (39.5) % |
Adjusted diluted earnings per share11 – Expressed in US$ per share | 0.066 | 0.102 | (36.0) % | (39.9) % |
2023 Fourth Quarter Highlights
For the three months ended December 31, 2023, Samsonite registered consolidated net sales of
The Group's gross profit margin expanded to
The Group recorded an income tax expense of
Compared to the corresponding period in 2019, Samsonite's net sales for the fourth quarter of 2023 increased by
Table 2: Key Financial Highlights for the Year Ended December 31, 2023
Expressed in US$ millions, except per share data | Year ended | Year ended | Percentage increase (decrease) 2023 vs. 2022 | Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
Net sales | 3,682.4 | 2,879.6 | 27.9 % | 30.0 % |
Gross profit | 2,182.8 | 1,605.4 | 36.0 % | 38.4 % |
Gross profit margin | 59.3 % | 55.8 % | ||
Operating profit8 | 743.7 | 492.1 | 51.1 % | 53.6 % |
Operating profit excluding total non-cash impairment reversals and restructuring (reversals) charges8, 9 | 659.1 | 421.2 | 56.5 % | 59.4 % |
Profit attributable to the equity holders | 417.0 | 312.7 | 33.3 % | 34.6 % |
Adjusted Net Income10 | 392.4 | 296.0 | 32.5 % | 33.8 % |
Adjusted EBITDA6 | 709.3 | 472.3 | 50.2 % | 54.0 % |
Adjusted EBITDA margin3 | 19.3 % | 16.4 % | ||
Basic earnings per share –Expressed in US$ per share | 0.289 | 0.218 | 32.7 % | 33.9 % |
Diluted earnings per share –Expressed in US$ per share | 0.287 | 0.217 | 32.1 % | 33.3 % |
Adjusted basic earnings per share11 – Expressed in US$ per share | 0.272 | 0.206 | 31.9 % | 33.2 % |
Adjusted diluted earnings per share11 – Expressed in US$ per share | 0.270 | 0.206 | 31.3 % | 32.6 % |
Results for the Year Ended December 31, 2023
The Group's performance for the year ended December 31, 2023, is discussed in greater detail below.
Net Sales
The Group's net sales increase was driven by the continued recovery and growth in leisure and business travel globally and the resulting increased demand for the Group's products. Supported by substantial investments in marketing behind Samsonite's industry-leading brands and product assortments, as well as the strength of the Group's direct-to-consumer business, the Group achieved double-digit year-on-year net sales growth in all regions in 2023.
Year Ended December 31, 2023, vs. Year Ended December 31, 2022
For the year ended December 31, 2023, the Group recorded net sales of
Year Ended December 31, 2023, vs. Year Ended December 31, 2019
Compared to 2019, the Group's net sales for the year ended December 31, 2023, increased by
Net Sales Performance by Region Table 3: Net Sales by Region
| ||||
Region13 | Year ended US$ millions | Year ended US$ millions | Percentage increase (decrease) 2023 vs. 2022 | Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
1,427.8 | 916.4 | 55.8 % | 61.7 % | |
1,267.2 | 1,117.3 | 13.4 % | 13.7 % | |
776.9 | 675.7 | 15.0 % | 15.1 % | |
209.5 | 168.8 | 24.1 % | 25.7 % | |
Corporate | 1.1 | 1.5 | (27.2) % | (27.2) % |
Net sales15 | 3,682.4 | 2,879.6 | 27.9 % | 30.0 % |
Year Ended December 31, 2023, vs. Year Ended December 31, 2022
For the year ended December 31, 2023, the Group recorded net sales of
Year Ended December 31, 2023, vs. Year Ended December 31, 2019
Compared to 2019, the Group's net sales in
Year Ended December 31, 2023, vs. Year Ended December 31, 2022
For the year ended December 31, 2023, the Group recorded net sales of
Year Ended December 31, 2023, vs. Year Ended December 31, 2019
For the year ended December 31, 2023, the Group's net sales in
For the year ended December 31, 2023, the Group's net sales in
Year Ended December 31, 2023, vs. Year Ended December 31, 2022
For the year ended December 31, 2023, the Group recorded net sales of
Year Ended December 31, 2023, vs. Year Ended December 31, 2019
For the year ended December 31, 2023, the Group's net sales in
Year Ended December 31, 2023, vs. Year Ended December 31, 2022
For the year ended December 31, 2023, the Group recorded net sales of
Year Ended December 31, 2023, vs. Year Ended December 31, 2019
For the year ended December 31, 2023, Samsonite's net sales in
Net Sales Performance by Brand Table 4: Net Sales by Brand
| ||||
Brand | Year ended US$ millions | Year ended US$ millions | Percentage increase (decrease) 2023 vs. 2022 | Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
Samsonite | 1,849.0 | 1,444.3 | 28.0 % | 30.1 % |
Tumi | 878.6 | 654.2 | 34.3 % | 35.8 % |
American Tourister | 654.5 | 519.4 | 26.0 % | 28.7 % |
Other18 | 300.3 | 261.7 | 14.8 % | 17.0 % |
Net sales | 3,682.4 | 2,879.6 | 27.9 % | 30.0 % |
The Group's core brands all achieved strong net sales gains during 2023 driven by the continued recovery and growth in leisure and business travel globally and the resulting increased demand for the Group's products.
For the year ended December 31, 2023, net sales of the Samsonite brand increased by
Net sales of the Tumi brand increased by
Net sales of the American Tourister brand increased by
Net Sales Performance by Product Category Table 5: Net Sales by Product Category
| ||||
Product Category | Year ended US$ millions | Year ended US$ millions | Percentage increase (decrease) 2023 vs. 2022 | Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
Travel | 2,435.9 | 1,891.8 | 28.8 % | 30.7 % |
Non-travel19 | 1,246.5 | 987.8 | 26.2 % | 28.5 % |
Net sales | 3,682.4 | 2,879.6 | 27.9 % | 30.0 % |
The Group's net sales in the travel product category continued to improve driven mainly by the continued recovery and growth in leisure and business travel and increased demand for the Group's products. Net sales in the travel product category increased by
Net Sales Performance by Distribution Channel Table 6: Net Sales by Distribution Channel
| ||||
Distribution Channel | Year ended US$ millions | Year ended US$ millions | Percentage increase (decrease) 2023 vs. 2022 | Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
Wholesale | 2,247.2 | 1,794.1 | 25.3 % | 27.4 % |
DTC | 1,433.9 | 1,083.8 | 32.3 % | 34.2 % |
Other20 | 1.3 | 1.6 | (21.6) % | (21.6) % |
Total net sales | 3,682.4 | 2,879.6 | 27.9 % | 30.0 % |
The Group's wholesale net sales increased by
For the year ended December 31, 2023, the Group's net sales in the direct-to-consumer ("DTC") channel, which includes company-operated bricks-and-mortar retail stores and e-commerce sites operated by the Group, increased by
During the year ended December 31, 2023, the Group added 96 company-operated retail stores, partially offset by the permanent closure of 29 company-operated retail stores. This resulted in a net increase of 67 company-operated retail stores in 2023, compared to a net reduction of 20 company-operated retail stores in 2022. The total number of company-operated retail stores was 1,052 as of December 31, 2023, compared to 985 at the end of 2022. During the year ended December 31, 2023, the Group's DTC retail net sales increased by
The Group's DTC e-commerce channel also experienced strong growth, with net sales increasing by
Gross Profit
The Group's gross profit increased by
Investment in Marketing
The Group substantially increased marketing activities as planned, spending US
Distribution Expenses
Distribution expenses increased by
General and Administrative Expenses
General and administrative expenses increased by
Operating Profit
The Group reported an operating profit of
The Group recorded an operating profit of
Profit Attributable to the Equity Holders
The Group reported profit attributable to the equity holders of
The Group recorded profit attributable to the equity holders of US
Adjusted EBITDA and Adjusted Net Income
Year Ended December 31, 2023, vs. Year Ended December 31, 2022
For the year ended December 31, 2023, the Group recorded Adjusted EBITDA6 of
For the year ended December 31, 2023, the Group's net sales rose by
Adjusted Net Income10 increased by
Year Ended December 31, 2023, vs. Year Ended December 31, 2019
Comparing the year ended December 31, 2023, against year ended December 31, 2019, Samsonite's gross profit margin increased by 390 basis points from
Adjusted Net Income10 was
Working Capital
The Group continued to optimize its working capital, particularly inventories, to support net sales growth. At
Trade and other receivables increased by
Total Capital Expenditures
As the business recovers, the Group is prudently increasing its spending on total capital expenditures towards retail expansion in key markets and refreshing its retail store fleet after a few years of tight control. During the year ended December 31, 2023, the Group selectively opened 96 new retail stores, particularly in
Balance Sheet and Free Cash Flow
The Group continued to focus on cash management and debt reduction. With strong profits and prudent cash management, Samsonite generated strong Free Cash Flow4 of
The Group utilized part of its Free Cash Flow4 to further deleverage its balance sheet, repaying
The reduction in net debt, together with the strong growth in Adjusted EBITDA6, enabled the Group to significantly lower its net leverage ratio5 to 1.53x as of December 31, 2023, a meaningful improvement compared to 2.85x at the end of 2022, and the lowest level since the acquisition of Tumi in 2016.
The Group had total liquidity of
2023 Final Results – Briefing for Analysts and Investors: | |
Date: | Thursday, March 14, 2024 |
Time: | 09:00 |
Venue: | Nathan Room, Lower Lobby, Conrad Hong Kong, |
Pacific Place, 88 Queensway, Admiralty, | |
Webcast Link: |
About Samsonite
With a heritage dating back to 1910, Samsonite International S.A. ("Samsonite" or the "Company", together with its consolidated subsidiaries the "Group"), is a leader in the global lifestyle bag industry and is the world's best-known and largest travel luggage company. The Group is principally engaged in the design, manufacture, sourcing and distribution of luggage, business and computer bags, outdoor and casual bags and travel accessories throughout the world, primarily under the Samsonite®, Tumi®, American Tourister®, Gregory®, High Sierra®, Lipault® and Hartmann® brand names as well as other owned and licensed brand names. The Company's ordinary shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited ("SEHK").
For more information, please contact: | |
Samsonite International S.A. – | |
Tel: +852 2422 2611 William Yue Email: william.yue@samsonite.com |
Helena Sau Email: helena.sau@samsonite.com |
Michael Freitag / Tim Ragones / Ed Trissel Tel: Tel: +1 212 355 4449 |
Notes | |
1 | Results stated on a constant currency basis, a non-International Financial Reporting Standards ("IFRS") Accounting Standards measure, are calculated by applying the average exchange rate of the quarter/year under comparison to current period local currency results. |
2 | On March 14, 2022, the Group suspended all commercial activities in |
3 | Adjusted EBITDA margin, a non-IFRS measure, is calculated by dividing adjusted earnings before interest, taxes, depreciation and amortization of intangible assets ("Adjusted EBITDA") by net sales. |
4 | Free Cash Flow is defined as net cash generated from (used in) operating activities less (i) purchases of property, plant and equipment and software ("total capital expenditures") and (ii) principal payments on lease liabilities (each as set forth on the consolidated statements of cash flows). |
5 | The total net leverage ratio is calculated by dividing total consolidated net debt minus the aggregate amount of unrestricted cash by the consolidated Adjusted EBITDA for the trailing four fiscal quarters on a pro forma basis as defined in the credit agreement. |
6 | Adjusted EBITDA, a non-IFRS measure, eliminates the effect of a number of costs, charges and credits and certain other non-cash charges. The Group believes these measures provide additional information that is useful in gaining a more complete understanding of its operational performance and of the underlying trends of its business. |
7 | Total liquidity is calculated as the sum of cash and cash equivalents per the consolidated statements of financial position plus available capacity under the Group's revolving credit facility. As of December 31, 2023, the Group had total liquidity of |
8 | Results for the three months ended December 31, 2023, included total restructuring reversals of |
9 | Operating profit and profit attributable to the equity holders, both excluding total non-cash impairment reversals and restructuring reversals (charges), are non-IFRS measures and, as calculated herein, may not be comparable to similarly named measures used by other companies and should not be considered comparable to operating profit and profit attributable to the equity holders in the Group's consolidated statements of income. |
10 | Adjusted Net Income, a non-IFRS measure, eliminates the effect of a number of costs, charges and credits and certain other non-cash charges, along with their respective tax effects, that impact the Group's reported profit attributable to the equity holders, which the Group believes helps to give securities analysts, investors and other interested parties a more complete understanding of the Group's underlying financial performance. |
11 | Adjusted basic and diluted earnings per share, both non-IFRS measures, are calculated by dividing Adjusted Net Income by the weighted average number of shares used in the basic and diluted earnings per share calculations, respectively. |
12 | On July 30, 2021, a wholly-owned subsidiary of the Company sold Speculative Product Design, LLC ("Speck"), including the Speck brand. As such, when comparing the Group's net sales for the three months and year ended December 31, 2023, with its net sales for the three months and year ended December 31, 2019, net sales by Speck in 2019 are excluded. |
13 | The geographic location of the Group's net sales generally reflects the country/territory from which its products were sold and does not necessarily indicate the country/territory in which its end customers were actually located. |
14 | When excluding the Group's net sales in |
15 | When excluding the Group's net sales in |
16 | Net sales reported for |
17 | Net sales reported for the |
18 | Other includes certain other non-core brands owned by the Group, such as Gregory, High Sierra, Kamiliant, ebags, Xtrem, Lipault, Hartmann, Saxoline and Secret. |
19 | The non-travel product category includes business, casual, accessories and other products. |
20 | "Other" primarily consists of licensing revenue. |
21 | Net working capital efficiency is calculated as net working capital (the sum of inventories and trade and other receivables, minus accounts payable) divided by annualized net sales. |
22 | For the year ended December 31, 2023, the Group spent |
23 | As of December 31, 2023, the Group had |
Non-IFRS Measures
The Company has presented certain non-IFRS measures in this press release because each of these measures provides additional information that management believes is useful for securities analysts, investors and other interested parties to gain a more complete understanding of the Group's operational performance and of the trends impacting its business. These non-IFRS measures, as calculated herein, may not be comparable to similarly named measures used by other companies, and should not be considered comparable to IFRS measures. Refer to the relevant announcement/report published by the Company for the corresponding period for reconciliations of the Group's non-IFRS Accounting Standards financial information. Non-IFRS measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, an analysis of the Group's financial results as reported under IFRS Accounting Standards.
Forward-looking Statements
This press release contains forward-looking statements. Forward-looking statements reflect the Company's current views with respect to future events and performance. These statements may discuss, among other things, the Company's net sales, gross profit margin, operating profit, Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA margin, cash flow, liquidity and capital resources, potential impairments, growth, strategies, plans, achievements, distributions, organizational structure, future store openings or closings, market opportunities and general market and industry conditions. The Company generally identifies forward-looking statements by words such as "expect", "seek", "believe", "plan", "intend", "estimate", "project", "anticipate", "may", "will", "would" and "could" or similar words or statements. Forward-looking statements are based on beliefs and assumptions made by management using currently available information. These statements are only predictions and are not guarantees of future performance, actions or events. Forward-looking statements are subject to risks and uncertainties.
If one or more of these risks or uncertainties materialize, or if management's underlying beliefs and assumptions prove incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Among the factors that could cause actual results to differ materially are: the effect of worldwide economic conditions; the effect of political or social unrest and armed conflict; the effects of inflation; a general economic downturn or generally reduced consumer spending; significant changes in consumer spending patterns or preferences; competition; interruptions or delays in the supply of finished goods or key components; the performance of the Group's products within the prevailing retail environment; and financial difficulties encountered by customers and related bankruptcy and collection issues.
Forward-looking statements speak only as of the date on which they are made. The Company's shareholders, potential investors and other interested parties should not place undue reliance on these forward-looking statements. The Company expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities laws and regulations.
Rounding
Certain amounts presented in this press release have been rounded up or down to the nearest tenth of a million, unless otherwise indicated. There may therefore be discrepancies between the actual totals of the individual amounts in the tables and the totals shown, between the amounts in the tables and the amounts given in the corresponding analyses in the text of this press release and between amounts in this press release and other publicly available documents. All percentages and key figures were calculated using the underlying data in whole US Dollars.
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SOURCE Samsonite
FAQ
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