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Tag: luggage

  • Samsonite profits up in 2015 but outlook ‘uncertain’

    Samsonite profits up in 2015 but outlook ‘uncertain’

    Luggage giant Samsonite on Thursday warned its outlook for this year was “uncertain” owing to the growth slowdown in key market China and a stronger US dollar.

    The firm said in a filing with the Hong Kong Stock Exchange that despite a tough trading year, it saw net profit rise 6.1 percent to $197.6 million last year thanks to record revenues of $2.43 billion.

    “Our business has emerged stronger from 2015… despite various headwinds around the globe,” chairman Timothy Charles Parker said in the statement.

    However, chief executive Ramesh Dungarmal Tainwala said the outlook for 2016 “remains uncertain, with challenging trading conditions expected in a number of our key markets including China, and the negative currency translation impacts from the strong US dollar expected to continue affecting our business”.

    The world’s second-largest economy expanded 6.9 percent in 2015, the worst performance in a quarter century and a far cry from the years of double-digit increases. The country’s luxury market also took a hit from a years-long corruption crackdown.

    “It is undoubtedly the case that the days of 20-30 percent growth in China are over,” Parker said.

    Shares in the company ended the morning session 1.54 percent up at HK$26.30 Thursday.

    The warning comes after Samsonite earlier this month said it would buy US luxury bag maker Tumi in a deal worth $1.8 billion, which analysts said would provide a foothold in the still-lucrative high-end market in China.

    The move follows the purchase last year of airport retailer Rolling Luggage and Italian accessories seller Chic Accent.

    Parker said the Tumi deal is expected to close in the second half of the year subject to shareholder and regulatory approval.

    “Tumi is a perfect complement for our business… We believe we are buying a strong, profitable and well-run business, with considerable flair and success behind it in the American market,” he said.

    Samsonite raised $1.25 billion in an initial public offering in Hong Kong in June 2011, one of several Western brands — including Prada and Esprit — seeking to use the city to boost their presence in fast-growing Asian markets, particularly China.

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  • Tumi plans more stores globally

    Tumi plans more stores globally

    US luggage retailer Tumi plans more stores internationally this year after a solid 2015.

    The company reported a net sales increase of 3.9 per cent to US$547.7 million in the year to December 31, or 6.7 per cent on a constant currency basis. Gross profit increased 6.8 per cent to $326.9 million, gross margin rose from 58 per cent to 59.7 per cent and net income was $63 million

    CEO and president Jerome Griffith said the company expects sales to increase a further 4 per cent to 6 per cent in the current year, assuming a constant exchange rate.

    “We are committed to growing our direct-to-consumer distribution worldwide through store openings, particularly in the international markets, as well as through the expansion of our global eCommerce platform. In 2015, we opened 27 new stores, and expanded our eCommerce platform to 18 countries globally.”

    This calendar year, the company expects to open between 15 and 20 stores, with an increasing focus on international markets.

    “Finally, we will focus our marketing programs and brand building initiatives on creating a deeper connection with our core customers and on extending our global reach,” said Griffith.