Samsonite International S.A. Announces Final Results for the Year Ended December 31, 2022

Overall, for the year ended December 31, 2022, the Group registered consolidated net sales of US$2,879.6 million, up US$858.9 million, or 52.3%¹, versus the US$2,020.8 million recorded in 2021. Excluding the net sales in Russia and by Speck, net sales grew by 57.4%^{1, 2, 3} year-on-year. Further excluding the net sales in China, the Group's net sales increased by 65.8%^{1, 2, 3, 8} year-on-year.

Compared to 2019, the Group's net sales for the year ended December 31, 2022, decreased by 14.6%¹, and by 10.4%^{1, 2, 3} when excluding the net sales in Russia and by Speck. This is a notable improvement compared to 2021, when the Group's net sales declined by 44.4%¹ versus 2019, and by 43.5%^{1, 3} when excluding the net sales by Speck. Further excluding the net sales in China, the Group's 2022 net sales were only 7.4%^{1, 2, 3, 8} below 2019.

The Group made great progress across all regions during the year ended December 31, 2022, with year-on-year net sales increases of 38.7%¹ (+44.6%^{1, 3} when excluding the net sales by Speck) in North America, 43.9%¹ (+68.5%^{1, 8} when excluding the net sales in China) in Asia, 87.7%¹ (+103.6%^{1, 2} when excluding the net sales in Russia) in Europe, and 72.5%¹ in Latin America. The strong year-on-year net sales gains in Asia (excluding China) clearly demonstrated strong consumer demand for travel as restrictions were lifted, and with China discontinuing its zero-COVID policy and reopening its borders in December 2022, the Group expects to see a meaningful recovery in China and in Asia overall in 2023.

Compared to 2019, during 2022 Samsonite's net sales in North America decreased by 18.1%¹, and by 9.9%^{1, 3} when excluding the net sales by Speck. Further adjusting for the discontinuation of third-party brand sales on the ebags e-commerce platform in 2020, net sales in North America during 2022 decreased by 4.9%^{1, 3} compared to 2019. Compared to 2019, during 2022 net sales in Asia decreased by 25.0%¹ (and by 19.5%^{1, 8} when excluding the net sales in China), while net sales in Europe decreased by 0.8%¹ (but increased by 5.7%^{1, 2} when excluding the net sales in Russia). Net sales in Latin America increased by 30.7%¹ during 2022 versus 2019.

For the year ended December 31, 2022, net sales of the Group's core travel brands Samsonite, Tumi and American Tourister increased year-on-year by 67.7%¹, 34.6%¹ and 63.4%¹, respectively, with the slower growth of Tumi largely attributable to inventory challenges in North America at the start of 2022 and the effects of tightened travel restrictions and social distancing measures in China. Compared to 2019, net sales for Samsonite, Tumi and American Tourister were lower by 5.0%¹, 11.2%¹ and 14.3%¹, respectively.

The Group's gross profit increased by US$504.0 million, or 45.8%, to US$1,605.4 million for the year ended December 31, 2022, from US$1,101.5 million for the year ended December 31, 2021. Gross profit margin expanded by 130 basis points to 55.8% in 2022 from 54.5% in 2021 due to reduced discounting and promotions. The Group's 2022 gross profit margin was in line with the 55.4% recorded in 2019 as the Group adjusted product prices to successfully offset the effects of fixed sourcing and manufacturing expenses on a lower net sales base, higher freight and raw material costs, and increased duty costs in the United States related to the expiration of the Generalized System of Preferences program.

The Group substantially increased investment in marketing across all regions in 2022 to capitalize on the continued recovery in travel and drive net sales growth. Marketing expenses were US$156.0 million during the year ended December 31, 2022, an increase of US$73.7 million, or 89.5%, compared to the US$82.3 million spent in 2021; and a reduction of US$33.5 million, or 17.7%, compared to the US$189.5 million spent in 2019. Marketing expenses made up 5.4% of net sales in 2022, 130 basis points higher than the 4.1% of net sales in 2021, and slightly higher than the 5.2% in 2019.

The Group maintained its focus on managing fixed selling, general and administrative ("SG&A") expenses. For the year ended December 31, 2022, while net sales rose by US$858.9 million to US$2,879.6 million, fixed SG&A expenses only increased by US$72.6 million to US$695.2 million. As a result, fixed SG&A expenses amounted to 24.1% of net sales in 2022, a sizable reduction from the 30.8% in 2021. More importantly, fixed SG&A expenses as a percentage of net sales were 320 basis points lower in 2022 than the 27.3% in 2019 despite a considerably lower net sales base. Consequently, Samsonite's Adjusted EBITDA margin⁹ expanded to 16.4% in 2022, a significant increase not only compared to the 9.0% for 2021, but also 290 basis points higher than the 13.5% for 2019, underscoring the positive impact of the comprehensive cost reduction program implemented in 2020 and 2021, and the Group's ongoing discipline in controlling expenses as net sales recovered.

For the year ended December 31, 2022, the Group's Adjusted EBITDA⁴ increased by US$290.0 million to US$472.3 million from US$182.3 million in 2021, and only US$19.9 million lower than the US$492.2 million recorded in 2019. On a constant currency basis, 2022 Adjusted EBITDA⁴ exceeded that of 2019 by 7.0%^{1, 5}, an impressive outcome considering net sales were still 10.4%^{1, 2, 3} lower in 2022 versus 2019 when excluding the net sales in Russia and by Speck. Adjusted Net Income¹⁰ was US$296.0 million for 2022, up US$278.7 million from US$17.4 million in 2021, and US$80.2 million higher than the US$215.9 million in 2019.

One of Samsonite's key long-term competitive advantages is its strong and enduring tradition of product innovation and excellence. Notwithstanding the disruptions during the past several years caused by the COVID-19 pandemic, Samsonite has continued to invest in product research and development, and we supplemented its traditional strengths in product lightness, strength and functionality with an increasing emphasis on product sustainability. As a result, when the COVID-19 pandemic restrictions eased, the Group was able to meet the resurgence in consumer demand with an amazing portfolio of travel and non-travel products across all brands. As part of the restructuring in 2020 and 2021, the Group implemented a rigorous program to streamline SKU count across different regions and brands to enhance efficiency, and the Group maintained discipline in SKU management even as it increased investment in inventories to support net sales growth. With inventories of US$687.6 million as of December 31, 2022, the Group is well positioned to support continued net sales growth going into 2023. In comparison, inventories were US$348.4 million at the end of 2021 and US$587.3 million at the end of 2019.

After having substantially restructured its retail store footprint in 2020 and 2021, Samsonite selectively invested in new store openings in 2022. The Group strategically opened 50 new retail stores in locations that offered good opportunity for its brands, particularly in Asia and for the Tumi brand in Europe. The Group also accelerated the remodeling of existing retail locations that were deferred during the COVID-19 pandemic and invested in its European manufacturing plants, including machinery and equipment to expand capacity and support new product innovation. The Group continued to invest in enhancing its e-commerce capabilities, such as a new Tumi.com platform in North America, new websites in Latin America, and CRM systems around the world. As a result, spending on capital expenditures (including software purchases) rose to US$62.8 million¹² in 2022, compared to US$25.9 million¹² in 2021 and US$74.5 million¹² in 2019.

The strong growth in Adjusted EBITDA⁴, along with ongoing attention on cash flow management, enabled Samsonite to generate total cash¹¹ of US$74.9 million during the year ended December 31, 2022, even as the Group increased inventories by US$339.2 million during the year to meet the rebound in consumer demand and increased investment in capital expenditures and software. In comparison, total cash generation¹¹ was US$199.8 million for the year ended December 31, 2021, driven in large part by a US$107.4 million reduction in inventories year over year.

Samsonite remained focused on reducing outstanding debt during 2022. The Group's strong underlying cash generation enabled the repayment of an additional US$530.6 million of outstanding borrowings under its senior credit facilities during the second half of 2022, following debt repayments totaling US$220.8 million in the first half of 2022, bringing total debt repayments to US$751.4 million in 2022. This improved the Group's net debt position to US$1,383.7 million⁶ as of December 31, 2022, compared to US$1,477.2 million⁶ at the end of 2021, and just US$78.4 million higher than the US$1,305.3 million⁶ at the end of 2019, before the COVID-19 pandemic. The reduction in net debt, together with the strong recovery in Adjusted EBITDA⁴, enabled the Group to improve its net leverage ratio¹³ to below 3.00:1 at 2.85:1 as of December 31, 2022.

Mr. Gendreau remarked, "The team is energized by Samsonite's strong performance in 2022 and excited about opportunities for continued growth in 2023. While inflation and macroeconomic concerns may impact near-term consumer sentiment, consumers' renewed enthusiasm for travel is expected to stay strong. For instance, the UNWTO¹⁴ estimates that international tourist arrivals could reach 80% – 95% of pre-COVID levels during 2023, compared to an estimated 63% recovery in 2022. In particular, we anticipate that China's discontinuation of its zero-COVID policy and associated travel restrictions will boost our net sales recovery in Asia, as well as Europe and North America later in the year as overseas travel by Chinese consumers rebounds. Furthermore, with the ongoing return to the office and businesses looking to enhance in-person collaboration, business travel is expected to experience meaningful recovery, providing additional impetus for our growth."

"Indeed, we are already seeing a positive impact from China's reopening. Compared to the same months in 2019, net sales in China were down 43.3%¹ in January 2023, but sharply rebounded to up 27.6%¹ in February 2023. Overall, our net sales in China for the first two months of 2023 were 19.3%¹ lower than the first two months of 2019, a noticeable improvement from the 54.4%¹ decline experienced in the fourth quarter of 2022 when compared to same period in 2019. Meanwhile, the pace of recovery in the rest of Asia has continued to accelerate, with net sales for the first two months of 2023 up by 21.1%^{1, 8} when compared to the first two months of 2019, versus a decline of 1.5%^{1, 8} during the fourth quarter of 2022 when compared to the same period in 2019. For Asia as a whole, January and February 2023 net sales were 12.0%¹ higher than the same period in 2019, a significant improvement compared to the 14.2%¹ decline recorded in the fourth quarter of 2022 when compared to the same period in 2019."

Mr. Gendreau continued, "Looking ahead, we remain focused on leveraging Samsonite's competitive strengths to extend our market leadership and drive long-term growth. We will continue to draw on our century-plus heritage of innovation, diverse set of product categories, and leading and complementary brands, as well as our commitment to sustainability and innovation.  Coupled with our industry-leading global sourcing and distribution platforms and our decentralized regional management structure, which allows us to offer products tailored to local consumer preferences, we are well-positioned to strengthen our long-term market position."

"We will continue to focus on product innovation, offering exciting new products across all our brands and markets, as well as working closely with our suppliers to ensure a healthy inventory position to meet consumer demand in 2023. We judiciously increased our capital expenditures during 2022, and we plan to further increase spending for key strategic initiatives in 2023, particularly on retail store refits postponed during the COVID-19 pandemic."

"As in 2022, we will continue to focus on sustaining our gross margin through reduced discounting and promotional activity and close coordination with our suppliers to manage rising costs. We also intend to raise our investment in marketing in 2023 to support new product launches and drive net sales growth, while controlling our non-marketing SG&A expenses to deliver positive operating leverage and an enhanced margin profile."

"Finally, we will continue to advance Samsonite's "Our Responsible Journey" sustainability initiatives, building on our momentum from 2022. Among other achievements, more than 23% of our net sales in 2022 came from products containing recycled materials, compared to an estimated 17%¹⁵ in 2021, and just 5% in 2019. We will continue to prioritize embedding sustainability throughout the business in 2023."

Mr. Gendreau concluded, "We believe long-term growth prospects for travel remain bright, and as long as we continue to treat all stakeholders with fairness and respect in line with our time-honored guiding principle, "Do unto others as you would have them do unto you," I am confident we will continue to build on our success to grow our net sales at a fundamentally higher margin profile, while realizing our ambition to lead the transformation of our industry and become the world's most sustainable lifestyle bag and travel luggage company."

Table 1: Key Financial Highlights for the Year Ended December 31, 2022

The Group's performance for the year ended December 31, 2022, is discussed in greater detail below.

Net Sales
The Group continued to experience improved net sales trends as the effects of the COVID-19 pandemic on demand for the Group's products moderated in most countries as governments loosened social-distancing, travel and other restrictions, which led to a robust recovery in travel. However, the strong recovery in most markets in Asia during 2022 was partially offset by the tightening of travel restrictions and social distancing measures in China in an effort to combat further outbreaks of COVID-19. Nevertheless, for the year ended December 31, 2022, the Group recorded net sales of US$2,879.6 million, an increase of US$858.9 million, or 52.3%¹, compared to the US$2,020.8 million recorded in 2021. When excluding the net sales in Russia and by Speck, the Group's net sales increased by US$923.5 million, or 57.4%^{1, 2, 3}, year-on-year. Further excluding the net sales in China, the Group's 2022 net sales increased by US$979.7 million, or 65.8%^{1, 2, 3, 8}, compared to 2021.

Compared to 2019, the Group's net sales for the year ended December 31, 2022, decreased by 14.6%¹, and by 10.4%^{1, 2, 3} when excluding the net sales in Russia and by Speck. This is a significant improvement compared to 2021, when the Group's net sales declined by 44.4%¹ versus 2019, and a reduction of 43.5%^{1, 3} when excluding the net sales by Speck. Further excluding the net sales in China, net sales for 2022 decreased by just 7.4%^{1, 2, 3, 8} compared to 2019.

The Group's net sales significantly improved during the first two months of 2023. When excluding the net sales in Russia and by Speck, consolidated net sales increased by 60.2%^{1, 2, 3} and by 16.5%^{1, 2, 3} for the first two months of 2023 compared to the first two months of 2022 and 2019, respectively. Further excluding the Group's net sales in China, consolidated net sales for the first two months of 2023 increased by 64.7%^{1, 2, 3, 8} and by 20.0%^{1, 2, 3, 8} compared to the first two months of 2022 and 2019, respectively.

Net Sales Performance by Region
North America
The Group recorded strong year-on-year net sales gains in North America in 2022, driven by strong product sell-through fueled by robust consumer demand as travel continued to rebound in the United States and Canada. For the year ended December 31, 2022, the Group recorded net sales of US$1,117.3 million in North America, an increase of 38.7%¹ (+44.6%^{1, 3} when excluding the net sales by Speck) year-on-year. The Group's net sales in the United States increased by 36.4% (+42.4%³ when excluding the net sales by Speck) year-on-year. The Group's net sales in Canada increased by 96.1%¹ year-on-year.

For the year ended December 31, 2022, the Group recorded a net sales decline of 9.9%^{1, 3} in North America versus 2019 when excluding the net sales by Speck, and a decrease of 18.1%¹ when such net sales are included. This is a significant improvement over 2021, when net sales in North America decreased by 38.0%^{1, 3} compared to 2019 when excluding the net sales by Speck, and a decrease of 40.9%¹ when such net sales are included. Further adjusting for the discontinuation of third-party brand sales on the ebags e-commerce platform in 2020, net sales in North America during 2022 decreased by 4.9%^{1, 3} compared to 2019.

The Group's net sales performance in North America continued to improve during the first two months of 2023. When excluding the net sales by Speck, net sales increased by 37.9%^{1, 3} and by 3.1%^{1, 3} for the first two months of 2023 compared to the same period in 2022 and 2019, respectively. Further adjusting for the discontinuation of third-party brand sales on the ebags e-commerce platform, net sales in North America for the first two months of 2023 increased by 9.7%^{1, 3} compared to the first two months of 2019.

Asia
For the year ended December 31, 2022, the Group recorded net sales of US$916.4 million in Asia, an increase of 43.9%¹ compared to 2021, driven by year-on-year net sales increases of 66.2%¹ in India, 219.0%¹ in Australia, 62.5%¹ in South Korea, 49.8%¹ in Japan and 116.1%¹ in Indonesia, partially offset by a year-on-year net sales reduction of 23.7%¹ in China due to the impact of tightened travel restrictions and social distancing measures in an effort to combat further outbreaks of COVID-19 during most of 2022. When excluding the net sales in China, net sales in Asia increased by 68.5%^{1, 8} year-on-year during 2022. 

E-Mail-Adresse

Bitte überprüfe deine die E-Mail-Adresse.

Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)

-1

Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink.

Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.

Andere Nutzer interessierten sich auch für folgende News

15.06.24 - wallstreet:online ...

Disruptive Technologien: Megatrend Digitalisierung: 6 aussichtsreiche Aktien, ETFs und Aktienfonds

15.06.24 - wallstreet:online ...

Besser als Barrick Gold?!: Zwei Produzentenaktien für das Comeback von Gold

15.06.24 - wallstreet:online ...

Aktienperformance: McDonald's-Aktie: Wie viel wurde seit 1970 aus 10.000 US-Dollar?