Samsonite Reports Q1 Growth and Strong Cash Flow, Advances US Listing Plans

MANSFIELD, Mass. & HONG KONG – May 13, 2026 – Samsonite Group S.A. (SEHK: 1910), the world's largest travel luggage company, today announced a resilient start to 2026, posting a 4.1% increase in first-quarter revenue to US$829.1 million. The results, released amidst a complex global economic landscape, were headlined by a dramatic turnaround in cash flow and a clear signal of the company's strategic direction, including an impending dual listing on a U.S. stock exchange.

The luggage giant demonstrated solid operational control, navigating geopolitical headwinds and shifting consumer travel patterns. While reported sales grew, constant currency net sales saw a more modest 0.4% uptick, reflecting the ongoing strength of the U.S. dollar. Alongside the financial results, the company unveiled a new US$50 million share repurchase program, reinforcing its commitment to shareholder returns just weeks after declaring a US$140 million dividend.

Financial Fortitude and Strategic Investments

A deeper look at the Q1 financials reveals a company balancing strategic investment against profitability. While the gross profit margin remained robust at 59.0%, the adjusted EBITDA margin contracted to 13.1% from 16.0% in the prior year. Company leadership attributed this dip to deliberate investments in long-term growth, including increased marketing spend, selective store openings, and inflationary pressures on distribution.

The standout figure was the adjusted free cash flow, which registered an inflow of US$27.3 million. This represents a significant US$68.5 million improvement from the US$41.2 million outflow recorded in the same period last year, a clear indicator of disciplined working capital management and operational efficiency. This financial stability underpins the company's aggressive capital return strategy.

"We made solid progress executing on our strategic priorities to drive our next phase of growth," said CEO Kyle Gendreau in the company's statement. He highlighted that investments in marketing and digital initiatives are key to elevating brand awareness and fueling future growth. Marketing expenses rose to 5.7% of net sales, a figure the company expects to increase to approximately 6.5% for the full year as it invests heavily ahead of peak travel seasons.

The Digital and Lifestyle Pivot Gains Momentum

Samsonite's strategy to move beyond its traditional wholesale and travel-centric roots continues to bear fruit. The company's direct-to-consumer (DTC) channels, which include its retail stores and e-commerce sites, outperformed the broader business with a 4.2% constant currency sales increase. E-commerce was a particularly bright spot, surging 11.3% on a constant currency basis, demonstrating the success of its digital investments.

This DTC push is a core tenet of Samsonite's plan to gain closer customer relationships and capture higher profit margins. The company's research has shown it aims for DTC channels to comprise 45% of transactions by 2026.

Equally important is the growth in the "lifestyle bags" category, which includes business bags, backpacks, and accessories. This segment grew 4.8% in the quarter, underscoring a successful diversification that reduces reliance on the cyclical travel market. This product expansion, covering brands from the core Samsonite line to the luxury TUMI and accessible American Tourister, helps the company capture a wider range of consumer spending occasions beyond just vacations.

Navigating Global Headwinds and Eyeing a US Debut

Despite the positive top-line numbers, Samsonite's performance was not uniform across the globe. The company's results were tempered by regional conflicts and macroeconomic uncertainty. Mr. Gendreau noted the impact of the conflict in the Middle East on sales in that region and in India. Excluding these markets, net sales grew by a more encouraging 1.6% on a constant currency basis.

Regionally, Latin America showed strong growth of 4.7%, while Europe remained stable at 0.8%. North America, a key market, showed sequential improvement but still registered a 1.7% decline. Meanwhile, Asia, the company's largest region, grew by 1.3%. This mixed performance highlights the challenging environment for global consumer brands.

Perhaps the most significant forward-looking announcement was the update on the company's planned dual listing in the United States. "We are completing preparation for a potential dual listing of the Company's securities in the United States," Gendreau stated, confirming the company's intent to complete the listing in 2026, market conditions permitting. This strategic move is intended to broaden its investor base, increase stock liquidity, and potentially unlock a higher valuation by tapping into the deep U.S. capital markets. For a company with a significant North American presence and iconic brands like TUMI, a U.S. listing is seen by management as a natural step to "enhance shareholder value creation over time."

A Steady Course in a Shifting Travel Market

Samsonite's Q1 performance positions it favorably against competitors in a market that is normalizing after the post-pandemic "revenge travel" boom. For comparison, luxury conglomerate LVMH, which owns luggage brand Rimowa, reported 2% organic growth in its Fashion & Leather Goods division, while accessory-focused Tapestry saw a 2% revenue increase in its most recent quarter. In this context, Samsonite's growth appears solid.

Looking ahead, the company projects low-single-digit constant currency net sales growth for the full year 2026, a sequential improvement over the 2.5% decline seen in 2025. Management expressed confidence in long-term travel trends and its ability to capture renewed consumer demand.

"As we progress on our strategic roadmap and leverage our scale advantages in product innovation and marketing, we expect constant currency net sales to grow in the low-single digit range in 2026," Gendreau commented, assuming the geopolitical situation does not materially worsen. With a strengthened balance sheet, a clear digital and product diversification strategy, and a major U.S. market debut on the horizon, Samsonite appears to be packing for a journey of steady, strategic growth.