Samsonite Group S.a. · HKEX:1910
Samsonite — Samsonite International — H1 2024 Earnings Presentation
43 slides from Samsonite's earnings presentation, Aug 14, 2024
Slide 1: 2024 Interim Results
Slide 2: Disclosure Statement
S DISCLOSURE STATEMENT This presentation and the accompanying slides (the “Presentation”), which have been prepared by Samsonite International S.A. (“Samsonite” or the “Company”), do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for,
Slide 3: Agenda
6 AGENDA O1 O2 OS O4 Business Update Financial Highlights Outlook Q&A
Slide 4: Business Update
BUSINESS UPDATE
Slide 5: Maintained strong profitability on net sales growth
« Maintained strong profitability on net sales growth” amidst a more challenging global trading environment + Achieved net sales of US$1,769 million in 1H 2024, delivering net sales growth of 2.8%” over an exceptionally strong 1H 2023 (1H 2023 was up 16.2%) vs. 1H 2019) that was fueled by strong con
Slide 6: Global travel trends continue, overall consumer sentiment weakened in Q2
6 While global travel and tourism trends continue, overall consumer sentiment weakened in Q2 + Weare pleased to have delivered constant currency sales growth in Q2 2024 ina more uncertain macroeconomic environment, with softening consumer sentiment and moderating customer traffic contributing to a s
Slide 7: Q2 2024 net sales growth of 1.5% against a record Q2 2023
6 Achieved Q2 2024 net sales growth of 1.5% against a record Q2 2023 while navigating pockets of headwinds in 2024 Q2 Net Sales Evolution $1,000 * Outsized Q2 2023 net sales growth was driven by extraordinary demand fueled by post-pandemic travel 2024 over a record Q2 2023 despite a shift in the ret
Slide 8: Global travel demand remains robust; passenger growth forecast
5 Global travel demand remains robust, and global passenger growth is forecasted to increase by over 1.2 billion to 6.2 billion in the next 5 years Regional and Global Yearly Forecast Growth Rates in Total Regional and Global Compound Annual Growth Rate (CAGR) and Passenger Numbers, % Net Growth in
Slide 9: Sales performance of the Samsonite brand led our core brands
» Sales performance of the Samsonite brand led our core brands in 1H 2024 $950 C soo Sams@nite $850 * Our core, industry leading Samsonite brand showed strong growth in $800 5 1H 2024, with sales up 5.8%") (1H 2024 net sales up 35.9% vs 1H & © $750 z 2019). > $700 * Growth in the brand was across al
Slide 10: Samsonite net sales by region
North America – Samsonite net sales Asia – Samsonite net sales Consolidated – Samsonite net sales Europe – Samsonite net sales Latin America – Samsonite net sales
Slide 11: Tumi brand sales were up slightly in 1H 2024
¢ Tumi brand sales were up slightly™ in 1H 2024 1 | TIMI * Net sales of our premium Tumi brand was up slightly on a constant $400 currency basis in 1H 2024, (1H 2024 net sales up 23.6% vs 1H g 2019). E 7350 ? * The brand saw healthy net sales growth of 2.7% and 31.8% in Asia a and Latin America, res
Slide 12: American Tourister brand excluding India up 1.5% in 1H 2024
6 Excluding India, our American Tourister brand was up 1.5% in 1H 2024 vs. 1H 2023, despite a more cautious consumer $340 AMERICAN $320.8 0.9% TOURISTER $320 ys $307.4 . . . * Net sales of our American Tourister brand was down slightly on a constant $300 currency basis in 1H 2024, but 1H 2024 net sa
Slide 13: Net sales growth by region
Constant Currency Growth vs ‘23 2.0% -0.5% 4.6% 20.3% North America’s business was down slightly to prior year driven mainly by moderating Excluding India, where we saw increased retail traffic in 1H 2024, and a record high net sales base in 1H 2023 fueled by increased promotional activity by compet
Slide 14: Innovation across our brands is driving sustainable, profitable growth
6 Innovation across all of our amazing brands is driving sustainable and profitable growth sams@nite ASIEN ESSENS LTD 19 DEGREE FRAME DASH POP 7
Slide 15: New products such as PROXIS ALU to drive growth in second half
« Amazing new products such as PROXIS ALU to drive growth in the second half * Travel in complete confidence with PROXIS ALU. PROXIS ALU * This collection is characterized by the distinctive and well-know design of our PROXIS range and its flawless finish with premium-quality aluminum. ¢ These suitc
Slide 16: RESTACKD, successor to bestselling STACKD collection
6 RESTACKD, an upgraded successor to our bestselling collection, STACKD * Our modern & minimalist bestseller, now even better. R E STAC K D * Even lighter suitcases, constructed of durable and lightweight polypropylene (vs. polycarbonate for STACKD) with the f ) same matte scratch-resistant finish.
Slide 17: Expanding the Degree collection with Degree Frame
° Expanding upon the iconic 19 Degree collection with 19 Degree Frame * 19 Degree Frame fills a white space in our current product offering—the key features of 19 Degree merged with our frame system opening. The collection is long-lasting, sleek, and sophisticated. * 19 Degree Frame features recycle
Slide 18: New American Tourister collections for younger consumers
6 Fun and exciting new American Tourister collections to appeal to a younger consumer across the world * Show off your vibrant personality with DashPop! * Made from strong polypropylene material, it offers maximum volume with a handy expandability function, and a spacious interior made from 100% Rec
Slide 19: Key partnerships for brand growth in 2H 2024: USA
6 Key partnerships for brand growth in 2H 2024: USA Gymnastics & Samsonite | US Sailing & Samsonite RNEyY} \7 SE OF USA GYMNASTICS ae ER es SR We partnered with USA Gymnastics and US Sailing to become the official luggage partner for each respective U.S. National Team members as they travel to domes
Slide 20: TUMI Sports Partnerships and new Global Ambassadors
6 Continue to expand our global reach and brand awareness through our TUMI Sports Partnerships with our newest Tumi Global Ambassadors Fonmi | 2% = NELLY KORDA TUM | LUDVIG ABERG 20
Slide 21: Key marketing campaigns in 2H 2024
« Key marketing campaigns in 2H 2024: YOU ARE THE JOURNEY 21
Slide 22: Bring It campaign in North America
Our “Bring It” campaign in North America pays tribute to our legacy of innovation, while also embracing the ever-changing landscape of travel Sams@nite BRING ON BRING ON slit ® RUNWAY | 9 | ADVENTURE| TIMELESS STYLE, ECODIVER, THE ONLY TRAVEL COMPANION TRUSTED DURABILITY. (\)_ ASADVEWTUROUS AS YOU A
Slide 23: Fine-tuned sustainability vision
* We have fine-tuned our sustainability vision to more clearly articulate our commitment Corporate Purpose: To empower a lifetime of journeys that move the world forward. Sustainability Vision: Use our leadership position to create a path towards a more sustainable future for our industry. OUR RESPO
Slide 24: Our Responsible Journey: Product Pillar
® Our Responsible Journey — we continue to define our 2030 vision and make progress towards existing goals Product Pillar Progress: We continue to advance work on our Product Sustainability Framework and to further increase the use of recycled content in our products. Q2 Highlight: We launched Samso
Slide 25: Our Responsible Journey: Planet and People Pillars
® Our Responsible Journey — we continue to define our 2030 vision and make progress towards existing goals Planet Pillar People Pillar = Progress: We continue to build out our climate = Progress: We continue to advance our global roadmap in support of the near-term science- employee experience strat
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 27: Constant currency growth of 2.8%
+2.8% constant currency growth • • • • • •
Slide 28: Net sales growth by region vs 2023
Constant Currency Growth vs ‘23 2.0% -0.5% 4.6% 20.3% North America’s business was down slightly to prior year driven mainly by moderating Excluding India, where we saw increased retail traffic in 1H 2024, and a record high net sales base in 1H 2023 fueled by increased promotional activity by compet
Slide 29: China and India more challenging retail environment in Q2 2024
6 China and India, two key markets in Asia, experienced a more challenging retail environment in Q2 2024 China $150 gran 3146.2 + China net sales were up +7.6%” in 1H 2024 compared to an extraordinarily strong 1H 2023. $130 + Sales growth in Q2 2024 was -3.5%" vs prior year compared to +23.0%" in Q1
Slide 30: North America Tumi and excluding Tumi
North America Tumi • • North America excluding Tumi • • (2)
Slide 31: Financial Highlights
° Financial Highlights ¢ Advertising spend of US$117 million in 1H 2024 (6.6% of net sales) was US$3 million higher than 1H 2023 (6.4% of sales) as we continued to invest heavily in driving brand awareness and e-commerce traffic. * Fixed SG&A expenses in 1H 2024 increased by US$17 million to US$426
Slide 32: Financial Highlights (cont'd)
¢ Financial Highlights (cont’d) * Net debt position of US$1,007 million as of June 30, 2024, compared to US$1,337 million as of June 30, 2023, with a continued focus on deleveraging the balance sheet. * The calculated total net leverage ratio” at June 30, 2024 was 1.39x, the lowest level since our a
Slide 33: Comparison of net sales by channel
Comparison of net sales by channel - Total DTC growth of +4.7%(1) o DTC E-Commerce growth of +10.0%(1) 1H 2023 o Retail growth of +2.8%(1), driven by 82 net new 1H 2024 stores, offset by comp store growth of -1.4% US$1,768.5 million US$1,776.2 million reflecting reduced store traffic. - Wholesale gr
Slide 34: Comparison of travel vs. non-travel net sales
Comparison of travel vs. non-travel net sales 1H 2023 1H 2024 US$1,776.2 million US$1,768.5 million - Travel growth of +1.4%(1) - Non-Travel growth of +5.3%(1) Travel Non-Travel
Slide 35: Profitability remained strong underpinning resilient business model
¢ Our profitability remained strong underpinning our resilient business model * Our strong profitability performance reflected higher gross margin in all regions. Sales mix continued to shift towards higher margin direct-to-consumer channels, while we maintained discipline on promotional discounts.
Slide 36: Fixed SG&A in Q2 2024 flat to recent quarters
6 Fixed SG&A in Q2 2024 was flat to recent quarters, but was up slightly from low level in Q2 2023 Fixed SG&A Trend Uus$m $260 $240 $220 $200 $180 $160 $140 $120 $100 $248.0 Q2 2019 Q2 2022 Fixed SG&A % of Net Sales was 410bp lower in 1H 2024 compared to 1H 2019 $213.0. $213.6 Qi 2023 Q2 2023 Q3 202
Slide 37: Balance sheet summary
US$m June 30, June 30, $ Chg Jun-24 % Chg Jun-24 vs. Jun-23 vs. Jun-23 • 2023 2024 Cash and cash equivalents 599.0 815.5 216.5 36.2% Trade and other receivables, net 314.4 346.1 31.7 10.1% Inventories, net 740.4 637.7 (102.7) -13.9% • Other current assets 96.2 95.8 (0.4) -0.4% Non-current assets 3,0
Slide 38: Working capital items
US$m June 30, December 31, June 30, $ Chg Jun-24 % Chg Jun-24 • 2023 2023 2024 vs. Jun-23 vs. Jun-23 Working Capital Items Inventories $ 740.4 $ 695.9 $ 637.7 $ (102.7) -13.9% Trade and Other Receivables $ 314.4 $ 319.6 $ 346.1 $ 31.7 10.1% Accounts Payable $ 537.5 $ 500.4 $ 462.8 $ (74.8) -13.9% Ne
Slide 39: Capital expenditures
US$m 1H 2023 1H 2024 • Retail 10.2 20.2 Manufacturing / Supply 5.7 16.4 • Information Services and Facilities 4.6 2.2 Software 4.7 2.1 • Other 0.4 0.3 Total Capital Expenditures 25.6 41.2
Slide 40: Outlook
OUTLOOK
Slide 41: Outlook
° Outlook + Looking ahead, while growth in global travel and tourism is expected to remain healthy throughout 2024, we are seeing a more uncertain macroeconomic environment with softening consumer sentiment in key markets in North America and Asia. We continue to see softer sales trends as we head i
Slide 42: Q&A
Q&A
Slide 43: Thank You
THANK YOU.
Samsonite International — H1 2024 Earnings Presentation on 6ix