Consolidated net sales increased by 2.8%1 compared to a strong first half in 2023  Gross profit margin expanded by 140 basis points year-on-year to 60.2% and Adjusted EBITDA margin2 increased by 10 basis points to 18.9%, both first half records Profit attributable to the equity holders increased by 7.7% (+16.1% constant currency) year-on-year to US$164.3 million Generated strong Free Cash Flow3 of US$81.6 million, a year-on-year increase of US$18.2 million Total net leverage ratio4 further improved to 1.39x, the lowest level since the 2016 acquisition of Tumi Company to pursue a dual listing of its shares in the United States HONG KONG, Aug. 14, 2024 /PRNewswire/ -- Samsonite International S.A. ("Samsonite" or "the Company", together with its consolidated subsidiaries, "the Group"; SEHK stock code: 1910), a leader in the global lifestyle bag industry and the world's best-known and largest travel luggage company, today published its unaudited condensed consolidated interim financial information for the six-month period ended June 30, 2024. OverviewCommenting on the results, Mr. Kyle Gendreau, Chief Executive Officer, said, "We are pleased with Samsonite's performance in the first half of 2024. We leveraged our increased investment in marketing to achieve year-on-year constant currency net sales growth compared to a record first half in 2023, a notable accomplishment given stronger headwinds this year, including more challenging macroeconomic conditions in China, a more competitive pricing environment in India, as well as lower consumer confidence and retail traffic in many markets. Our ongoing discipline on promotional discounts and rigorous expense controls enabled the Group to achieve gross profit margin of 60.2% and Adjusted EBITDA margin2 of 18.9%, both first half records. Additionally, our Free Cash Flow3 generation improved as we continued to optimize working capital during the period."  Supported by increased investment in marketing and contribution from the Group's direct-to-consumer ("DTC") channel, net sales for the six months ended June 30, 2024, increased by 2.8%1 year-on-year despite softening consumer demand. Net sales for the first half of 2024 in Asia, Europe and Latin America increased by 2.0%1, 4.6%1, and 20.3%1, respectively, and were relatively consistent in North America, against a strong first half in the previous year. During the first half of 2023, the Group registered record net sales that were fueled by a post-pandemic travel resurgence across Asia, particularly in China, which lifted restrictions at the beginning of 2023; as well as strong growth in North America due to increased sales to wholesale customers ahead of a robust summer travel season and strong sales of the Tumi brand driven by elevated demand for its key core collections and supported by the arrival of delayed inventory.  The Group's industry-leading Samsonite brand achieved a year-on-year net sales increase of 5.8%1 in the first half of 2024, with growth across all regions. Net sales of the Tumi brand grew by 0.3%1, while net sales of the American Tourister brand decreased slightly by 0.9%1 in the first half of 2024 compared to the first half of 2023. Supported by continued investments in its DTC operations, the Group's DTC net sales increased by 4.7%1 and contributed to a first half record of 38.1% of total net sales during the first half of 2024 compared to 37.7% in the first half of 2023. The Group's gross profit margin expanded to a new first half record of 60.2% for the first half of 2024 compared to 58.8% for the first half of 2023, with improvements in all regions. This increase was driven by a higher share of total net sales from the DTC channel, shifts in brand mix and continued discipline on promotional discounts. As planned, the Group increased investment in marketing to 6.6% of net sales during the first half of 2024, a 20-basis point increase from the first half of 2023. At the same time, the Group continued to diligently manage its fixed selling, general and administrative ("SG&A") expenses to drive positive operating leverage, even with continued investments in expanding its company-operated retail store fleet to 1,083 stores as of June 30, 2024, a net increase of 82 company-operated retail stores compared to June 30, 2023. The Group's fixed SG&A expenses increased by US$17.3 million year-on-year to US$425.5 million for the six months ended June 30, 2024. However, fixed SG&A expenses in the first half of 2024 remained relatively flat compared to the US$427.8 million in the second half of 2023, despite the net addition of 31 company-operated retail stores during the first half of 2024, reflecting the Group's ongoing discipline on expense management. Adjusted EBITDA margin2 improved by 10 basis points to a first half record of 18.9% for the six months ended June 30, 2024, compared to 18.8% for the same period in 2023, even as the Group increased its investment in marketing and expanded its company-operated retail store fleet. Adjusted EBITDA5 was a healthy US$333.5 million for the first half of 2024, essentially unchanged compared to US$334.3 million for the first half of 2023, but a year-on-year increase of 4.3%1 on a constant currency basis. For the six months ended June 30, 2024, the Group recorded profit attributable to the equity holders of US$164.3 million, an improvement of US$11.8 million, or 7.7% (+16.1% constant currency), helped by a US$11.3 million reduction in net finance costs, year-on-year. Adjusted Net Income6 increased by US$3.1 million, or 1.8% (+9.3% constant currency), to US$174.0 million for first half of 2024, compared to US$170.9 million for the same period in 2023. These solid results underscore the Group's fundamentally enhanced margin profile and ongoing discipline in expense management.  With robust Adjusted EBITDA5 and prudent cash and working capital management, Samsonite's Free Cash Flow3 increased by US$18.2 million year-on-year to US$81.6 million during the six months ended June 30, 2024. The Group ended the first half of 2024 with net debt of US$1.0 billion7 and total net leverage ratio4 of 1.39x, a further improvement compared to net debt of US$1.1 billion7 and total net leverage ratio4 of 1.53x at the end of 2023. In April 2024, the Company refinanced its term loan B facility to further enhance its financial flexibility. The Group borrowed US$100.0 million from its lower interest rate revolving credit facility and used the proceeds of such borrowing and the proceeds from its new term loan B facility to repay the entire principal amount of its outstanding borrowings under the previous term loan B facility, plus transaction expenses. The principal amount of borrowings under the new term loan B facility was US$500.0 million as of June 30, 2024. In addition, the Company was able to reduce the interest rate payable on its new term loan B borrowings by 75 basis points, with the refinancing expected to reduce the Company's annual cash interest payments in the first full year following the refinancing by approximately US$4.9 million.  Considering its strong performance and financial position, the Board of Directors reinstated annual cash distributions to the Company's shareholders in 2024, paying out US$150 million in July 2024. Furthermore, in June 2024, the Board authorized a share buyback program of up to US$200 million, and the Company plans to initiate share buybacks after the blackout period ends following its first half 2024 results announcement. The Board has authorized the Company to pursue a dual listing of Samsonite's shares in the United States. The Board and the Company believe the United States is the appropriate venue to establish a dual listing following a thorough evaluation of the Company's global footprint, growth drivers, and strategic priorities. A dual listing in the United States will build on the Company's strong investor support on the Hong Kong Stock Exchange to enhance value creation over time, by improving the liquidity of the Company's shares and making them more accessible to shareholders in the United States and globally. Mr. Gendreau continued, "For the remainder of 2024, our outlook has become more clouded due to increased macroeconomic uncertainties and softening consumer sentiment. Year-on-year net sales growth slowed to 1.5%1 in the second quarter of 2024 compared to 4.1%1 in the first quarter of 2024 due to deceleration in Asia and North America. In Asia, compared to the same period in 2023, we continued to see good growth in the second quarter of 2024 in Japan and Australia, where net sales increased by 12.2%1 and 4.8%1, respectively, but net sales in China decreased by 3.5%1 due to softening consumer sentiment, and net sales in India decreased by 11.3%1 due to intensified promotional activity by competitors. As a result, net sales in Asia decreased by 2.9%1 in the second quarter of 2024 versus an increase of 7.5%1 in the first quarter of 2024, year-on-year. In North America, net sales decreased by 1.2%1 in the second quarter of 2024 compared to an increase of 0.3%1 in the first quarter of 2024, with second quarter 2024 net sales of the Tumi brand down by 3.1%1 year-on-year due to the slower traffic and increased caution among consumers that is currently affecting many premium and luxury brands. Second quarter 2024 net sales in Europe and Latin America increased by 9.5%1 and 23.3%1, respectively, year-on-year, though performance in some markets showed signs of weakening." "We continue to see softer sales trends as we head into the second half of 2024. Promotional activity has increased in the marketplace, particularly at entry level price points, and while we have responded tactically to this, Samsonite's priority remains to drive high-quality sales to build a strong foundation for long-term, profitable, brand-accretive growth. We will remain vigilant in controlling promotional discounts and managing expenses, especially our fixed SG&A expenses, to sustain the Group's robust margin profile. Additionally, we will continue to manage cash and working capital closely to maintain strong Free Cash Flow3 generation. This will provide additional flexibility in capital allocation to continue to deleverage our balance sheet, invest in organic growth, and return cash to our shareholders." "Trends in global travel and tourism remain positive, supporting demand for the Group's products. International tourism arrivals continue to improve and are projected to exceed pre-pandemic levels in 20248, and demand for air travel during the peak Northern Hemisphere summer period remains strong9. As consumers continue to prioritize travel over other discretionary spending, our prospects remain bright despite current headwinds." "With substantial liquidity of US$1.6 billion10 as of June 30, 2024, we are well positioned to continue to invest in the business for future growth. Our relentless commitment to product innovation, quality, functionality, reliability and sustainability will reinforce our brands' appeal among consumers as they become more selective and deliberate with their spending, and further sets us apart from the competition. As such, we will continue to invest in marketing to drive awareness across our brands, targeting advertising spend at approximately 7% of net sales. In addition, we will continue to invest in upgrading and expanding our brick-and-mortar retail and e-commerce operations." "We continue to make great progress on 'Our Responsible Journey', leveraging our leadership position to create a path towards a more sustainable future for our industry. A priority right now is establishing a near-term, science-based emissions reduction target across our own operations and supply chain. We're excited about this important next step and are planning to publish our target later this year." Mr. Gendreau concluded, "Our teams are highly energized, and we are confident that our portfolio of leading brands, unrivaled global sourcing and strong distribution infrastructure, and commitment to sustainability and innovation will continue to strengthen Samsonite's market position and drive sustainable and profitable long-term growth." Table 1: Key Financial Highlights for the Three Months Ended June 30, 2024 Expressed in US$ millions, except per share data Three months ended June 30, 2024 Three months ended June 30, 2023 Percentage increase (decrease)2024 vs. 2023 Percentage increase (decrease)2024 vs. 2023excl. foreigncurrency effects1 Net sales 908.9 924.1 (1.6) % 1.5 % Gross profit 545.4 549.1 (0.7) % 3.3 % Gross profit margin 60.0 % 59.4 % Operating profit 164.9 167.4 (1.5) % 3.0 % Profit attributable to the equity holders 81.4 78.7 3.4 % 13.6 % Adjusted Net Income6 86.9 89.6 (3.1) % 5.9 % Adjusted EBITDA5 172.3 177.9 (3.2) % 1.2 % Adjusted EBITDA margin2 19.0 % 19.3 % Basic earnings per share –Expressed in US$ per share 0.056 0.055 2.2 % 12.2 % Diluted earnings per share –Expressed in US$ per share 0.055 0.054 1.6 % 11.5 % Adjusted basic and diluted earnings per share11 – Expressed in US$ per share 0.059 0.062 (4.8) % 4.0 % 2024 Second Quarter HighlightsFor the three months ended June 30, 2024, the Group's net sales decreased by US$15.2 million, or 1.6%, to US$908.9 million, but increased by 1.5%1 on a constant currency basis, against a strong second quarter in 2023. In comparison, during the three months ended June 30, 2023, Samsonite recorded net sales growth of 36.1%1, 12 compared to the second quarter of 2022, driven by an 84.3%1 net sales increase in Asia due to post-pandemic travel resurgence across the region, particularly in China (+191.8%1), and net sales growth of 19.8%1 in North America due to increased sales to wholesale customers ahead of a robust summer travel season and strong performance of the Tumi brand driven by elevated demand for its key core collections and supported by the arrival of delayed inventory. The 1.5%1 year-on-year constant currency net sales increase during the second quarter of 2024 was driven by growth in Europe and Latin America, where net sales increased by 9.5%1 and 23.3%1 year-on-year, respectively, though with growth in some markets showing signs of slowing. During the second quarter of 2024, net sales in Asia decreased by 2.9%1 compared to the same period in 2023, with net sales in China decreasing by 3.5%1 due to softening sentiment among Chinese consumers, and net sales in India decreasing by 11.3%1 due to intensified promotional activity among competitors. Excluding China and India, net sales in Asia decreased slightly by 0.2%1, year-on-year. Net sales in North America for the second quarter of 2024 decreased by 1.2%1, with net sales of the Tumi brand down by 3.1%1 year-on-year due to slower traffic and increased caution among consumers. For the three months ended June 30, 2024, net sales of the Samsonite brand increased by 5.2%1 driven by growth in North America, Europe and Latin America. Performance of the Tumi brand was impacted by the softer consumer demand and traffic that is currently affecting many premium and luxury brands, with second quarter 2024 net sales decreasing by 0.8%1 year-on-year. Net sales of the American Tourister brands decreased by 4.5%1 due to reduced purchases by certain wholesale customers in North America and intensified promotional activity by competitors in India. The Group's DTC net sales increased by 2.3%1 and accounted for 39.4% of total net sales during the second quarter of 2024 compared to 39.1% in the same period of 2023. The Group achieved gross profit margin of 60.0% in the second quarter of 2024, an increase of 60 basis points year-on-year, as the Group continued to carefully control promotional discounts. As planned, the Group increased its investment in marketing to 7.1% of net sales in the second quarter of 2024 compared to 6.9% of net sales in the second quarter of ...