Samsonite (USOTC:SMSEY) shares surged 14% on Thursday after fresh U.S. air travel data showed passenger throughput rising roughly 4% in October — the strongest monthly increase so far this year.
The improving travel backdrop reinforces management’s upbeat expectations heading into the end of 2024, even as the company prepares to lap a higher wholesale comparison in the fourth quarter.
Despite softer demand and tariff-related pressures, the luggage maker reported solid third-quarter gross margin performance, underscoring stronger brand positioning, a more efficient supply chain, and a competitive environment that remains manageable.
Management reiterated confidence in its fourth-quarter earnings outlook. The company’s strengthened omnichannel strategy — across both e-commerce and brick-and-mortar stores — is expected to help capture returning travel demand, while Asia and the Tumi brand are set to provide further margin support.
Morgan Stanley analysts said, “Samsonite’s downturn began from 2Q/3Q24, with global demand hit by inflation and reversal of travel surge. We think 3Q25 likely marks a start of a new cycle.”
The bank added, “we expect the stock to rerate meaningfully near-term, driven by the positive outlook in 4Q. Its sales growth has turned positive in Aug-Oct.”