Shares of Samsonite International (HK:1910) fell sharply on Friday following the company's release of its full-year financial results, which showed declines in both revenue and adjusted net profit.
For the fiscal year 2025, Samsonite reported net sales of $3.50 billion, down 2.5% from $3.59 billion the prior year. Adjusted net income declined 20.7% to $293.4 million. The company attributed the revenue contraction mainly to more cautious purchasing behavior among traditional brick-and-mortar wholesale customers, which it linked to macroeconomic uncertainty and softer consumer sentiment.
Samsonite noted that stronger direct-to-consumer e-commerce sales helped to partly offset the weaker wholesale performance. By brand, core Samsonite sales fell 3.0% and American Tourister revenue was down 8.8%, while TUMI posted a 1.2% increase. Geographically, Asia and North America were weaker contributors to sales, whereas Europe benefited from robust travel demand.
The market reaction was pronounced on the Hong Kong exchange. Shares slumped as much as 13% to HK$14.58 intraday and were trading about 8% lower at HK$15.42 by 06:14 GMT.
On the corporate strategy front, Chief Executive Kyle Gendreau said that preparations for a potential dual listing in the United States are progressing and that the company intends to complete the move in 2026. Management said it believes the proposed U.S. listing would enhance shareholder value over time. Separately, shareholders approved the cancellation of treasury shares, with that cancellation to become effective only after completion of any U.S. dual listing.
Context and market implications
The results highlight the tension between wholesale and direct-to-consumer channels for consumer goods companies. Samsonite reported that wholesale customers have adopted a more cautious purchasing stance, which weighed on overall sales, while the company's e-commerce channel provided partial relief. The uneven performance across brands and regions underlines the varied demand patterns the company is navigating.
Management's plan to pursue a U.S. dual listing and the shareholder approval to cancel treasury shares tie into corporate governance and capital structure considerations, with the company expressing an intention to complete the filing and listing procedures in 2026.