Samsonite hit by weak consumer spending

Melody Chen and Bloomberg

Luggage maker Samsonite (1910) reported a net profit of US$346 million (HK$2.7 billion) last year, down 13 percent from a year earlier, as weaker consumer spending on high-end brands, lower retail traffic and price wars by rivals weighed on earnings.

The company declared a dividend of 10.26 US cents per share.

Revenue fell 2.5 percent to US$3.59 billion.

Sales in Asia and North America fell 3.6 percent and 1.2 percent respectively, while Europe and Latin America saw growth of 3.1 percent and 17 percent.

Samsonite continues to make progress toward a potential dual listing in the United States and was said to be working with JP Morgan and Morgan Stanley. While the company would continue to trade in Hong Kong, it may consider making the US its primary listing venue, according to sources.

Its Hong Kong-listed shares ended 1 percent higher at HK$19.7 yesterday.