Samsonite International S.A.

Q3 reported net sales declined 1.3%; constant-currency net sales also declined 1.3%, versus down 5.2% in the first half. Gross margin was 59.6%, up 30 bps year over year from 59.3% and up 60 bps sequentially. Adjusted EBITDA was $143 million, adjusted EBITDA margin was 16.3%, and adjusted net income was $64 million. Operating profit was $139 million and adjusted free cash flow was $64.7 million. Year to date, gross margin was 59.3%, adjusted EBITDA was down $77 million year over year, and net income was $187 million. For Q4, management expects some level of improvement in constant-currency net sales growth versus Q3, with continued benefit from global travel demand, Paralux, and elevated advertising; for the full year, Kyle said the company is likely to be “just shy of 6%” advertising spend, and Reza said dividend payout policy generally remains around a 40% payout ratio.

Kyle Gendreau framed the quarter as an inflection point, saying the business is seeing sequential improvement across every region and brand and that the company is capitalizing on travel growth and a larger non-travel opportunity. He emphasized product innovation, stronger advertising, and the company’s scale advantages as the basis for returning to its normal growth profile over time. He also said the board and management still view a U.S. dual listing as the right move and intend to complete it in 2026 if the environment remains constructive.

Reza Taleghani focused on the improving financial trajectory and the company’s ability to defend gross margin. He highlighted Q3 sales down 1.3%, adjusted EBITDA of $143 million, adjusted EBITDA margin of 16.3%, adjusted net income of $64 million, and gross margin of 59.6%, which he said was 30 bps better than last year despite tariffs. He also noted 43 net new company-owned stores, $339 million of distribution and G&A expense, $53 million of advertising spend, $64.7 million of adjusted free cash flow, $1.2 billion of net debt, $1.3 billion of liquidity, and net leverage of about two turns. On capital allocation, he said the dividend policy is generally a 40% payout ratio, share repurchases remain opportunistic, and the recently completed refinancing extended maturities while improving pricing and liquidity.

Analysts pressed on when Samsonite might re-couple with travel growth, where advertising spend should settle, and what is driving Q4 improvement. Kyle said he believes next year should look more normalized, with the business starting to more clearly track travel trends again, and that Q4 improvement should come across brands and regions, with Samsonite likely improving at a faster clip. On China, Reza said trends are improving, with TUMI particularly strong; TUMI’s growth in Asia was driven by the existing store base rather than net new store additions, and both returning customers and new customers are contributing. On capital deployment, management reiterated a 40% dividend payout ratio, said buybacks remain opportunistic, and noted the $200 million repurchase program already completed. They also said early reads on China’s Double 11 were positive and should help Q4.