Samsonite to progress with US listing as weak consumer sentiment hits profits

[HONG KONG] Samsonite International said that it continues to make progress towards a potential dual listing in the US, as profit fell amid weaker-than-expected consumer sentiment and slower retail traffic globally.

China was notably impacted by challenging macroeconomic conditions, chairman Timothy Charles Parker said in an exchange filing on Thursday (Mar 13). The business was also hit by reduced retail traffic and decreased consumer spending on premium and luxury brands, he added.

The American luggage firm saw net sales fall 2.5 per cent to US$3.59 billion for 2024, missing the US$3.61 billion consensus by analysts, according to an exchange filing. Revenue in China fell only 2 per cent despite soft consumer sentiment. Net income for the company as a whole also fell to US$345.6 million from 396.9 million in 2023.

Samsonite is said to be working with JPMorgan Chase and Morgan Stanley towards a dual listing in the US. While the company would continue to trade in Hong Kong, it may consider making the US its primary listing venue, according to sources familiar with the situation.

Chief executive officer Kyle Francis Gendreau said on Thursday the dual listing would enhance value creation and make its securities more accessible to investors in the US and globally.

The company also plans to enhance its brand portfolio through accretive M&A in the long term. BLOOMBERG