Samsonite Group SA Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Erwan Rambourg - HSBC - Analyst : Yeah, hi there, gentlemen, and thanks a lot for taking my question. At the beginning of the presentation, it seemed that you were pointing to a slightly better current trading. I think you said, Asia was slightly improving in Q2, and LATAM was back to double digit growth. So but at the end of the presentation you seem to imply that Q2 should be in line with Q1. So I'm just wondering which is it. Secondly, I think you have a very good chart showing the correlation between travel trends in the long term and sales growth for your business. Travel trends this year should be up 5%. I suspect your business will not be up that much, but mostly because of sentiment. But is the idea that the correlation continues and maybe you play catch up next year? Is that the way we should think about it? And then lastly, I think when you talk about mitigation factors, you talk about pricing and cost adjustments, et cetera. I wanted to come back on the pricing part of the equation. How much have you priced so far this year? How much can you price for the full year? And is this global or is this more US centric price increases? Thank you.

Question: Dustin Wei - Morgan Stanley - Analyst : Thanks for taking my questions. Two questions. One is regarding the sales trend in second quarter. Do you see any kind of order pull forward in second quarter, especially for North America, sort of support the trend there? And if we look into sort of the detail, in Asia, like taking first quarter for example, we are seeing actually China didn't decline that much India are turning positive. Japan is actually also down like 2% to 3%, but overall Asia on constant currency is still down 7%. So, do you see broad-based weakness across different countries in Asia and does that kind of broad-based weakness, if any continue to the second quarter? That's on sales. And the second question related to EBITDA margin. So assuming the second quarter sales trend is similar to first quarter and you are going to still have a similar GP margin profile because the bigger kind of revenue size is second quarter because of seasonality. Are we going to expect that EBITDA margin in second quarter will be better than first quarter, not just like, better quarter-on-quarter, but on the Y-o-Y comparison basis we're also seeing that better trend for EBITDA margin in second quarter. Thank you.

Question: Dustin Wei - Morgan Stanley - Analyst : Okay.

Question: Anne Ling - Jefferies - Analyst : Yeah, hi, management team. Thank you for taking my call. I have a couple of questions. First of all, regarding the brand performance. We've seen a very good performance for Toomey and also Samsonite, and then American Tourists are down 10%. I think last time management mentioned that, if there is any downturn, the company is likely to focus more on the profitability, unlikely to launch like some of these like lower price point brand to fans of like, some of the competition. So with this as a backdrop, what is your strategy for American Tourists? Do we have any plan maybe to expand the price range or you think that it is very, like it's mainly due to the economic downturn, nothing much we can do about that. So focus on like, profit margin improvement and control some of the cost. I'm not sure you know how you look at in terms of like American Tourist. Thank you. That's my first question.

Question: Anne Ling - Jefferies - Analyst : I see. So for the second quarter, if I take a look at the trend by brand, is it also similar or maybe like you know American Tourists will see some improvement. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 12:30PM, 1910.HK - Q1 2025 Samsonite Group SA Earnings Call

Question: Anne Ling - Jefferies - Analyst : Yeah, cool. Yeah. Another thing is regarding the US market. So with the tariff overhead, have you guys like, spoken to the supplier to the wholesaler, because my understanding is that, US is like 70% wholesale. So in that case, like, the peak season is about, it's in like, Thanksgiving, 4Q. So when will be the time that, you, regardless of the uncertainty of the tariffs, you need to send something out, ship something out to the market, otherwise there's nothing at the store. So when will we see that and yeah.