Samsonite International S.A. Announces Results for the Three and Nine Month Periods Ended September 30, 2020

HONG KONG, Nov. 12, 2020

Overview
Commenting on the results, Mr. Kyle Gendreau, Chief Executive Officer, said, "Samsonite's performance continued to see sequential improvement during the third quarter of 2020 as markets around the world gradually emerged from lockdown. Our net sales in September 2020 decreased by 60.4%¹ year-on-year, compared to declines of 63.3%¹ in August and 69.8%¹ in July. This encouraging trend continues into the fourth quarter, with the year-on-year decline in the Group's net sales improving to approximately 58%¹ during October 2020."

For the three months ended September 30, 2020, the Group's net sales improved to US$326.6 million from US$201.1 million in the second quarter. The year-on-year decline in net sales moderated to 64.7%¹ during the third quarter of 2020 compared to 77.9%¹ in the second quarter of 2020, with all regions recording improved net sales.

Mr. Gendreau remarked, "Management has continued to focus on driving cost reduction and cash conservation, including significant reductions in marketing and non-marketing SG&A expenses, a virtual freeze on capital expenditures, and disciplined management of product purchases and working capital. In total, we identified close to US$40 million of additional in-year fixed cost savings during the third quarter of 2020, and we now expect to achieve cash savings of over US$600 million in 2020, up from the approximately US$580 million expected at the end of the first half of 2020. These initiatives, along with our gradually improving sales performance, resulted in the Group's Adjusted EBITDA² improving from US$(127.8) million for the second quarter of 2020 to US$(50.7) million during the third quarter of 2020, with Asia returning to positive Adjusted EBITDA during the third quarter. Our total cash burn³ decreased to US$(67.7) million for the three months ended September 30, 2020 compared to US$(166.7) million for the second quarter of 2020."

"Given the ongoing uncertainty around the course of the COVID-19 pandemic, we expect Samsonite's performance to remain under pressure into early 2021. As such, we remain focused on identifying and implementing further cost reduction and cash conservation initiatives. Samsonite continued to maintain a substantial liquidity position of US$1.5 billion⁴ as of September 30, 2020, and we are confident of our ability to navigate the ongoing challenges from the COVID-19 pandemic. We are monitoring the situation closely, and we will continue to prioritize the health and safety of our employees and their families, as well as our customers and business partners."

Mr. Gendreau continued, "With increased consumer interest in sanitation and disinfection, we have launched new products that incorporate anti-bacterial technology to enhance protection on product surfaces, and our innovation teams are actively working with vendors on exciting new anti-viral technologies that we hope to be able to incorporate into our products in the future."

Mr. Gendreau concluded, "We remain focused on executing our long-term strategy to extend our market leadership and drive growth by leveraging Samsonite's century-plus heritage of innovation and developing new products that meet consumer needs. Following the successful launch of the Proxis™ hard-shell suitcase collection, we are unveiling another exciting new product, Samsonite's new Konnect-I backpack featuring Jacquard™ by Google that enables control of the wearer's smartphone with a simple hand gesture on the backpack's interactive strap. We believe that our continued commitment to innovation, along with steady execution of Samsonite's 'Our Responsible Journey' sustainability strategy, will strengthen the Group's long-term growth prospects."