|American Tourister sales lift Samsonite earnings, costs rise
Hong Kong listed travel and business luggage maker Samsonite International (1910) said today half-year earnings grew by 17.6 percent to US$92.9 million, adjusted for tax benefits booked in the first half last year.
Sales reached a record US$983.6 million, an increased of 16.2 percent, the company said today. The bulk of its sales are in Asia, while only 9.5 percent of global sales for the first half were in China.
Excluding currency effects, sales in Asia increased by 15.5 percent to US$370.1 million.
Asia sales growth continues to be driven by American Tourister luggage, which accounted for US$38.9 million, or 85.3 percent, of the increase in sales in the region, the company said. American Tourister made up 43.1 percent of net sales in Asia compared with 37.2 percent in 2012.
Sales of Samsonite luggage, which accounted for 55.1 percent of sales in Asia, increased by US$6 million, or 3 percent year-on-year. High Sierra products sales amounted to US$1.8 million in Asia.
Turnover in China increased by 10.3 percent and was the biggest market in the region, accounting for 25.2 percent of sales. The American Tourister luggage and the expansion of points of sale helped pushed China sales.
India remains a difficult market, Samsonite said.
South Korea became the second largest country in the region with a sales increase of 33.7 percent over last year. Business in Japan was up 19.5 percent.
Cost of sales increased to US$460.6 million. Marketing and distribution costs also increased.
Samsonite listed in Hong Kong in June, 2011
Employee benefits expense, including payroll, pension plan expenses, share-based payments and other benefits, for the half-year increased to US$121 million from US$104.4 million in the first half 2012.
Bonuses in the first half amounted to US$2.9 million compared with US$2.2m in 2012, while directors fees was US$255,000 versus US$200,000 in the 2012.