The following is a summary of the Samsonite International S.A. (SMSOF) Q3 2024 Earnings Conference Call Transcript:

Financial Performance:

• Q3 net sales were $878 million, a decrease of 6.8% year-over-year but an increase of 21% from 2019.

• Gross margin for the quarter was 59.3%, slightly down by 30 basis points compared to the same quarter last year.

• Adjusted EBITDA was $155 million, representing a margin of 17.6%, down 270 basis points year-over-year.

• Strong cash flow continued with $94 million, up $5 million from Q3 of the previous year.

Business Progress:

• Samsonite continues to perform well in North America with a sales increase of 3.5% in Q3.

• The Tumi brand experienced a slowdown, especially in premium and luxury sectors in the U.S. and Asia, but grew in Europe and Latin America.

• Aggressive store expansion strategy especially in Asia and Europe, with a focus on direct-to-consumer sales channels.

• Continued focus on sustainability with initiatives aimed at reducing Scope 3 emissions and increasing use of recycled materials.

Opportunities:

• Continued recovery in travel still presents long-term growth opportunities, with a positive outlook on travel trends indicating a potential 5% yearly growth. Samsonite's strong historical performance suggests ability to outperform these trends.

• Expansion plans in emerging markets like Latin America, continued growth in direct-to-consumer channels, and product innovations are poised to drive future sales.

Risks:

• The competitive and promotional environment, especially in India, has led to decreased sales performance and margins. The market dynamics in this region continue to exert pressure on profitability.

• The luxury sector slowdown, particularly impacting the Tumi brand in regions like the U.S., presents a risk to overall brand performance.

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