Company Reports

Samsonite is changing what it sells, and that is becoming increasingly important to the earnings outlook over the next five years. A company known for a stable portfolio of luggage brands is redirecting its growth toward lifestyle bags, a category where brands are more fleeting, growth is less predictable and, we think, margins are lower than in travel products. The 2026 purchase of Beis is the first move, and the company has said it will not be the last.

Samsonite’s near-term outlook will largely depend on the macroeconomic conditions in the United States and the impact of tariffs. With one-third of Samsonite's revenue coming from the US, a recession and weakened consumer spending could negatively affect the company’s sales. Escalating tariffs also pose risks to Samsonite. While the company has reduced its exposure to US tariffs on China by shifting production to Southeast Asia, there is no assurance that this region will remain exempt from future tariffs.

Samsonite's second-quarter net sales fell 1.6% and adjusted operating profit dropped 23%, excluding the benefit of US tariff refunds. Separately, the company agreed to acquire digitally native bag brand Béis at a valuation of USD 210 million, corresponding to roughly 13 times Béis' 2025 earnings.

Samsonite's first-quarter sales were flat, but operating profit fell 16% due to cost inflation, new store openings, higher marketing spending, and increased freight costs. For the rest of the year, management expects low-single-digit constant-currency sales growth.

Samsonite's fourth-quarter revenue grew 1% on a constant-currency basis, but the outlook for the first quarter of 2026 has dimmed. The ongoing conflict in the Middle East is expected to leave total sales roughly flat year over year. East Asia, meanwhile, remains a bright spot with resilient demand.

Samsonite shares have declined more than 10% since the outbreak of war in the Middle East on Feb. 28, 2026.

Samsonite’s near-term outlook will largely depend on the macroeconomic conditions in the United States and the impact of tariffs. With one-third of Samsonite's revenue coming from the US, a recession and weakened consumer spending could negatively affect the company’s sales. Escalating tariffs also pose risks to Samsonite. While the company has reduced its exposure to US tariffs on China by shifting production to Southeast Asia, there is no assurance that this region will remain exempt from future tariffs.

Samsonite’s near-term outlook will largely depend on the macroeconomic conditions in the United States and the potential impact of tariffs. With one-third of Samsonite's revenue coming from the US, a recession and weakened consumer spending could negatively affect the company’s sales. Escalating tariffs also pose risks to Samsonite. While the company has reduced its exposure to US tariffs on China by shifting production to Southeast Asia, there is no assurance that this region will remain exempt from future tariffs.

Samsonite posted sequential earnings improvement in the third quarter of 2025. The revenue decline narrowed to 1% year over year on a constant-currency basis, while operating profit rose 5%. Management’s early reading in the fourth quarter points to continued momentum.

Samsonite reported a 6% year-on-year revenue decline on a constant-currency basis in the second quarter of 2025, with operating profit down 18%. While management remains cautious about issuing guidance due to macroeconomic uncertainty, they expect improved performance in the second half.

Samsonite’s near-term outlook will largely depend on the macroeconomic conditions in the United States and the potential impact of tariffs. With one-third of Samsonite's revenue coming from the US, a recession and weakened consumer spending could negatively affect the company’s sales. Escalating tariffs also pose risks to Samsonite. While the company has reduced its exposure to US tariffs on China by shifting production to Southeast Asia, there is no assurance that this region will remain exempt from future tariffs.

Samsonite's first-quarter 2025 revenue declined by 4.5% year on year on a constant currency basis, with operating profit down 27%. Shares fell 9% in Hong Kong trading. Management expects a second-quarter sales decline to match the first quarter's but to gradually improve in the second half of 2025.

Many of Samsonite's sourcing regions, including Vietnam, Thailand, and Indonesia, are now subject to the United States' latest reciprocal tariff policy. Following the announcement of these tariffs, Samsonite's shares dropped 8% during the April 3 trading session.

Samsonite’s near-term outlook will largely depend on the macroeconomic conditions in the United States and the potential impact of tariffs. With one-third of Samsonite's revenue coming from the US, a recession and weakened consumer spending could negatively affect the company’s sales. Escalating tariffs also pose risks to Samsonite. While the company has reduced its exposure to US tariffs on China by shifting production to Southeast Asia, there is no assurance that this region will remain exempt from future tariffs.

Samsonite experienced a 1% decline in revenue and a 27% decrease in operating profit during the fourth quarter of 2024. Management anticipates a revenue decline in the low to midsingle digits for the first quarter of 2025, but expects to see sequential sales growth for the rest of the year.

Samsonite’s near-term outlook will largely depend on the macroeconomic conditions in the United States and the potential impact of tariffs. With one-third of Samsonite's revenue coming from the US, a recession and weakened consumer spending could negatively affect the company’s sales. Escalating tariffs also pose risks to Samsonite. While the company has reduced its exposure to US tariffs on China by shifting production to Southeast Asia, there is no assurance that this region will remain exempt from future tariffs.

Chinese travel and consumer discretionary stocks gained on Jan. 14 after China's State Council suggested issuing tourism coupons to boost spending.

Narrow-moat Samsonite’s third-quarter earnings were below our estimates. Nonetheless, management sees sales improvement in the fourth quarter, and its slightly lowered guidance for 2024 is still in line with our forecast. We maintain our fair value estimate of HKD 27 per share on Samsonite and view shares as undervalued. Shares are trading at 8 times our projected 2025 earnings and offer a decent 4% dividend yield.

Samsonite’s second-quarter sales were down 2% year over year and missed our expectations by 12%, though profit margins remained steady. Management lowered its full-year revenue guidance by approximately 7% and slightly reduced the adjusted EBITDA margin forecast by 20 basis points. Despite ongoing growth in global travel, Samsonite's reluctance to lower prices—which are about 20% higher than prepandemic levels—is significantly affecting the attractiveness of its products in the highly competitive luggage industry. We maintain our view that Samsonite will eventually abandon its current pricing strategy, opting instead to chase incremental profits at the expense of margins and its premium brand equity.

Samsonite's revenue and earnings faced significant challenges due to the impact of the coronavirus pandemic. Despite these pressures, the company took steps to safeguard its business, including drastic cost cuts. Now that travel has returned to prepandemic levels, Samsonite is poised to achieve impressive near-record profit margins in the near term. However, this positive momentum is unlikely to last over the long run.