Luggage maker Samsonite's Q3 revenue beats expectations; sets stock buyback plan

Overview

• Luggage maker's Q3 revenue was flat yr/yr amid travel and inflation headwinds, while analysts were expecting a drop

• Adjusted net income for Q3 rose 2.7% yr/yr

• Company completed BÉIS acquisition and announced $50 mln share buyback program

Outlook

• Company did not provide specific financial guidance for the current or upcoming periods in its press release

Result Drivers

• MIDDLE EAST CONFLICT AND INFLATION - Co said travel and inflation headwinds, especially from Middle East conflict, weighed on sales and demand, particularly in the U.S.

• TARIFF REFUND - Q3 gross profit margin rose due to a one-time U.S. tariff refund; underlying margin improved slightly on mix and execution

• HIGHER OPERATING EXPENSES - Operating profit fell due to widespread inflation in operating expenses, partly offset by increased gross profit

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy"

• Wall Street's median 12-month price target for Samsonite Group S.A. is HK$19.90, about 35.1% above its November 12 closing price of HK$14.73

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)