Samsonite shares fall on weaker-than-expected Q1 outlook

Samsonite International S.A. shares fell more than 8% on Tuesday after the travel luggage manufacturer reported weaker-than-expected first-quarter results and lowered its full-year guidance.

The Hong Kong-listed company said revenue declined 7.1% year-over-year to $532.6 million in the first quarter, missing analyst estimates of $558.3 million. Net profit attributable to shareholders dropped 19.3% to $25.4 million, compared with $31.5 million a year earlier.

Samsonite attributed the revenue decline to soft demand in North America and Europe, its two largest markets, as well as persistent inflationary pressures affecting consumer spending. The company also cited supply chain disruptions in Asia, which impacted production and distribution.

In response, management revised its full-year outlook, now expecting revenue to decline by 5% to 7% versus prior guidance of a 1% to 3% decline. Adjusted net profit is now projected to fall by 10% to 15%, down from the previous range of a 5% to 10% decrease.

Analysts at Jefferies maintained a hold rating on the stock but reduced their price target to $12.50 from $14.00, citing the weaker outlook. "The guidance cut reflects ongoing challenges in consumer discretionary spending, particularly in premium segments," the firm said in a note.

Samsonite’s shares, which had gained 4.2% year-to-date before Tuesday’s drop, were trading at $11.80, down 8.3% at midday in Hong Kong. The stock has underperformed the broader travel and leisure sector this year, which is up 2.1% over the same period.

The company’s management emphasized that while near-term challenges persist, long-term growth remains tied to recovery in international travel and stabilization of global supply chains.

Investors are expected to closely monitor the company’s performance in the second quarter, particularly in light of ongoing macroeconomic headwinds and potential further shifts in consumer behavior.