Samsonite (1910 HK): Trading Cheap, Yet Tariffs Loom. And Shorts At All-Time High

• Samsonite (1910 HK), the world's leading travel luggage manufacturer/retailer, is trading well below its historical metrics.

• The share price is up ~30% from its recent low, but down ~22% YTD following a ~31% fall over a 10-day period in early-April, shortly after Trump's "Liberation Day" speech.

• Management initiated a US$200mn buyback program last August. Overhangs include tariff and weak retail market in Asia and North America. Plus short selling has touched an all-time high.

Conclusions

• 1Q25 net sales, EBITDA, net profit, announced on the 13th May 2025, declined 7.3%, 20.9%, and 42.6% yoy to US$796.6mn, US$127.6mn , and US$48.2mn.

  • Samsonite flagged the lower net sales in Asia, and "softening consumer confidence in North America". The wholesale channel net sales timing shifts in North America also had negative impacts on 1Q25 revenue.

    • However, in Europe, net sales of the American Tourister and TUMI brands increased.

  • At the time of these results, Samsonite said it was considering price increases on items that are (or will be) significantly impacted by the tariff increases; and has increased forward-bought inventory to help alleviate the near-term impacts of tariff increases - despite the 90-day stand-off between China and the U.S.

  • As Samsonite poignantly put it: "The timing of implementation, scope and extent of tariffs, as well as their effect on global supply chains and consumer demand, remains unknown."

  • Interim results should be out the middle of next month.