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HONG KONG - Samsonite International S.A. (OTC:SMLWF) reported weaker-than-expected first quarter earnings on Monday, sending shares down 8.7% as the luggage maker grapples with softening consumer demand and tariff uncertainties.
The company’s adjusted EBITDA fell 20.9% YoY to $128 million in the first quarter, missing analyst expectations. Revenue declined 7.3% to $796.6 million, in line with estimates but down 4.5% in constant currency terms compared to the same period last year. Gross profit margin contracted 1 percentage point to 59.4%.
Samsonite expects sales trends in the second quarter to remain similar to Q1, forecasting a mid-single digit percentage decline YoY in constant currency. The company cited weakening consumer sentiment due to uncertainty around U.S. tariff policies as a key factor impacting demand.
"The situation regarding U.S. tariffs remains fluid, creating challenges in forecasting for the second half of 2025," said Kyle Gendreau, CEO of Samsonite. "We are preparing to navigate potential cost pressures through price increases, supplier negotiations, and product reengineering."
The company reported negative adjusted free cash flow of $41 million for Q1, attributed to lower adjusted EBITDA and higher working capital from pre-purchasing inventory ahead of potential tariffs. Samsonite continues to focus on driving profitable growth and maintaining cost discipline amid the uncertain environment.
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