NewSamsonite’s interim profit falls 12.7 per cent, as online shopping crimps demand for luggage
Company, facing ‘the most challenging market conditions since 2008’, is shifting to online sales from conventional retail stores
Samsonite International SA, the world’s largest luggage maker, said net profit fell 12.7 per cent in the first half, as a weak global economy discouraged travelling and spending, while more customers opted to shop online, eschewing the need for carriage bags and trunks.
Interim profit fell to US$82.4 million, or 5.8 US cents per share, Samsonite said. Net sales rose 1.1 per cent to US$1.21 billion, the company said in a statement.
Samsonite’s biggest market is in Asia, contributing 38.9 per cent to its global sales, while North America made up 33.4 per cent, Europe added 22.2 per cent and Latin America added 5.2 per cent.
A strong US dollar eroded Samsonite’s Asia and Europe earnings in dollar terms, the company said. A worldwide trend to buy everything online further dampened demand for luggage, Parker said.
“In many of our key markets, our traditional channels of distribution have begun a painful process of adjustment to the shift in business online, and the implications for scale and type of retail estate,” Parker said.