Tumi powers solid Samsonite sales growth, especially in Asia
Hong Kong-listed luggage giant Samsonite International has achieved its seventh consecutive year of sales growth following its listing in 2011.
Net Samsonite sales were up 8.4 per cent on a constant-currency basis to US$3.797 billion in the year to December 31. Profit attributable to shareholders rose by 23.9 per cent before extraordinary items saw that figure reversed into a 29.2 per cent decline to $236.7 million.
Net sales in Asia increased by 10.2 per cent year on year to $1.324 billion, driven by the Tumi, American Tourister, Samsonite and Kamiliant brands. Tumi’s sales increased by 29.5 per cent, due in part to the full-year contribution from having taken direct control of Tumi distribution in certain Asian markets during 2017, as well as increased brand penetration in key Asian markets.
A boost in marketing saw American Tourister’s net sales increase by 8.9 per cent in Asia, while Samsonite sales rose by a more modest 2.1 per cent. The group’s entry-level brand Kamiliant achieved a 44.1 per cent increase in sales in Asia as it continued to take market share from other entry-level brands across the region.
Overall, Asia recorded second-half net sales growth of 6.5 per cent and full-year growth of 10.2 per cent.
CEO Kyle Gendreau said sales in Japan rose by 14.1 per cent and in India by 28.5 per cent, in the second half, but these gains were partially offset by slower growth in China, which recorded just 3.2 per cent growth as consumer sentiment weakened amid concerns about trade relations with the US; and in South Korea where net sales decreased by 1.5 per cent in the second half.
“Our growth was underpinned by positive performances from our core brands,” said Gendreau. “Tumi continued to perform ahead of expectations, making great strides in enhancing its international presence, with strong growth in Asia and Europe.”