Samsonite International S.A. Announces Results for the Three and Nine Month Periods Ended September 30, 2021

HONG KONG, Nov. 12, 2021

Overview
Commenting on the results, Mr. Kyle Gendreau, Chief Executive Officer, said, "We are pleased that Samsonite's net sales recovery noticeably accelerated during the three months ended September 30, 2021. All of our regions achieved net sales improvements, with overall net sales coming in 37.6%² below the third quarter of 2019 when excluding the net sales of Speck for August and September 2019³. This is a considerable improvement compared to the second quarter of 2021 and the first quarter of 2021, when net sales were lower than the corresponding periods in 2019 by 52.2%² and 57.3%², respectively."

"The Group's gross margin continued to improve from 52.4% in the second quarter of 2021 to 55.5% in the third quarter of 2021, 10.6 percentage points higher compared to the same period last year, and roughly level with the 55.7% recorded in the third quarter of 2019 before COVID-19. Together with the savings from our comprehensive cost reduction and restructuring measures implemented in 2020 and ongoing expense controls, Samsonite's Adjusted EBITDA⁴ increased to US$72.2 million in the third quarter of 2021, up by US$60.7 million from the US$11.5 million recorded in the second quarter of 2021. Our Adjusted EBITDA margin⁵ expanded to 13.0% during the third quarter of 2021, an increase of 10.4 percentage points from the 2.6% recorded in the second quarter of 2021, and just 150 basis points lower than the 14.5% recorded during the third quarter of 2019, despite a significantly lower sales base. The strong recovery in our Adjusted EBITDA⁴ enabled Samsonite to record Adjusted Net Income⁶ of US$8.7 million for the three months ended September 30, 2021, the first quarter that the Group achieved positive Adjusted Net Income⁶ since the fourth quarter of 2019."

For the nine months ended September 30, 2021, Samsonite recorded net sales of US$1,356.6 million, an increase of 17.7%² year-on-year, and 49.5%² below the comparable period in 2019. When excluding the net sales of Speck for August and September 2020³, the Group's third quarter 2021 net sales increased by 20.3%² year-on-year and were lower by 48.9%² compared to the nine months ended September 30, 2019 when excluding the net sales of Speck for August and September 2019³. The Group's gross margin expanded by 460 basis points year-on-year to 52.7% for the first nine months of 2021. Driven by increased net sales and gross profit, along with actions to reduce our fixed and variable cost structure, the Group recorded Adjusted EBITDA⁴ earnings of US$55.3 million for the nine months ended September 30, 2021, an improvement of US$228.9 million from the Adjusted EBITDA⁴ loss of US$173.6 million for the same period in 2020. Adjusted Net Loss⁶ was US$95.0 million for the nine months ended September 30, 2021, an improvement of US$176.8 million from the Adjusted Net Loss⁶ of US$271.8 million for the first nine months of 2020.

Mr. Gendreau continued, "In addition to the comprehensive cost reduction and restructuring measures implemented in 2020 and ongoing expense management, we also continued to focus on conserving cash, limiting capital expenditures and software purchases, as well as maintaining close control on working capital, particularly inventories. These actions enabled Samsonite to achieve total cash generation⁷ of US$116.1 million during the three months ended September 30, 2021, a significant improvement of US$143.4 million from total cash burn⁷ of (US$27.3) million during the second quarter of 2021."

"We are encouraged by the continued sales improvement across all regions, and the strong positive Adjusted EBITDA⁴ and cash generation that we achieved during the third quarter of 2021. We are especially pleased to see our Adjusted EBITDA⁴ back in the black for the first nine months of 2021 on sales that are only about half of pre-COVID levels. I want to thank our teams globally for helping to attain approximately US$200.0 million in annualized run-rate fixed cost savings from implementing our comprehensive cost reduction program in 2020 and into 2021, as well as their continued focus on controlling expenses and conserving cash. Samsonite's positive momentum has continued into the fourth quarter of 2021. Excluding the net sales of Speck for October 2020 and 2019, the Group's October 2021 net sales were up by 80.7%² year-on-year, and the decrease versus October 2019 further narrowed to 28.9%², with net sales performance improving across all of our regions."

"We intend to continue capitalizing on the recovery in global travel, which so far has been driven mainly by the resumption of domestic travel in our key markets and is expected to accelerate as restrictions on international travel begin to be relaxed. The United States has just lifted restrictions on flights from a host of countries, including Brazil, China, India, most of the European Union and the United Kingdom, beginning on November 8, 2021. As vaccination rates continue to increase around the world, other countries also are expected to start relaxing restrictions on foreign travel, driving the next phase in our recovery. We are poised to meet increased consumer demand with an extensive assortment of new products, and we have begun to selectively increase advertising spend to drive sales in markets where travel is recovering more quickly."