Samsonite Group (1910) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 were US$3,589 million, nearly flat year-over-year (down 2.5% reported, flat constant currency), following a record 2023 and reflecting softer sentiment in Asia and India, but robust travel trends and DTC growth.

• Gross margin improved to 60.0% (up 70bps), driven by disciplined promotions, SKU transformation, and increased DTC sales mix.

• Adjusted EBITDA reached US$683 million (19.0% margin), down 3.7% year-over-year, with margin only 30bps lower despite lower sales.

• Adjusted net income was US$369.8 million, down 5.8% year-over-year, mainly due to lower sales and higher depreciation.

• Free cash flow for the year was US$311 million, up 9.3% year-over-year, with net debt stable at US$1.1 billion.

Financial highlights

• Q4 2024 net sales were US$942 million, up 1.0% year-over-year, with sequential improvements across all regions.

• Q4 gross margin was 60.2%, up 30bps from Q4 2023; Q4 adjusted EBITDA margin reached a record 20.7%, up 160bps.

• Adjusted net income for the year was US$370 million, compared to US$392 million in the prior year.

• Net debt at year-end was US$1.1 billion, with net leverage at 1.58x and total liquidity of US$1.42 billion.

• Returned over US$308 million to shareholders via dividends and share repurchases.

Outlook and guidance

• Q1 2025 net sales expected to be down low to mid-single digits year-over-year, mainly due to timing and North America softness, with sequential improvement anticipated for the rest of 2025.

• Europe and Latin America expected to remain steady; Asia and India showing improving trends.

• Targeting advertising spend at 6.5% of sales for 2025; EBITDA margin expected to remain similar to 2024.

• Board recommended a US$150 million dividend for 2025 (43.4% payout ratio).

• Preparations for a potential dual listing in the U.S. are ongoing.