Samsonite (USOTC:SMSEY) reported a 5% decline in second-quarter sales, slightly outperforming Morgan Stanley’s estimates, while adjusted EBITDA came in at $141 million, in line with expectations.
The luggage maker’s EBITDA margin reached 16.3%, below the forecasted 16.8%, mainly due to lower gross profit margins—likely driven by increased promotional activity—and higher distribution costs associated with new store openings.
The company did not provide specific guidance for the second half of 2025 but suggested there may be some improvement in the third quarter. Current projections anticipate a 2% decline in total sales for Q3, with U.S. wholesalers’ restocking decisions remaining a key factor.
Although Samsonite has effectively managed operating expenses, distribution costs are rising as the company continues to open 40-50 new stores annually. Analysts caution that if second-half sales underperform, EBITDA margin estimates could face downside risk.
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