Samsonite Group'S Sales Growth Will Buy Tumi Brand For Us $1 Billion 800 Million.

Hongkong, the world's largest manufacturer of suitcases

Recently released its 2015 annual report, group net sales performance is good, recorded a 11.9% increase, but by China's short-term economic outlook uncertainty, is expected to slow down in the second half.

In addition, the group announced that it will buy Tumi, a high-end business travel accessories and accessories company for about 1 billion 824 million dollars, and the paction will be completed in the second half of this year.

According to the annual earnings report, group net sales increased to $2 billion 432 million 500 thousand, compared with last year, 11.9% in fixed currency terms.

Excluding net purchases in 2014, net sales increased by 9.8%.

Operating profit increased 3.2% to US $308 million 900 thousand.

In fixed currencies, it increased by 9.3%.

Total annual profits rose 5.7% to $217 million.

In fixed currencies, it increased by 9.9%.

Adjusted net income increased by 5.2% to $216 million 900 thousand, a 9.5% increase in fixed currency terms.

Profits after adjusted tax depreciation and amortization rose by 4.4% to $401 million 200 thousand.

By brand, Samsonite brand net sales fell by 2.9% to $1 billion 490 million, which was mainly affected by the strength of the US dollar.

Excluding the effect of exchange rate, the brand increased by 5.7%.

In 2015, Samsonite accounted for 61.3% of the group's net sales.

American Tourister brand sales increased by 8.9% to $549 million, mainly driven by group expansion and penetration of existing markets, coupled with targeted advertising campaigns.

Excluding the effect of exchange rate, the brand increased by 16.7% compared with last year, accounting for 22.6% of group net sales.

At fixed exchange rates,

Net sales fell 1.5%, due to the fact that North American net sales were reduced by a number of customers, and sales of department stores fell.

Hartmann's brand increased by 30.9%, and its popularity in Asia increased, pushing its net sales growth to two times annually.

In addition, the three major brands of Lipault, Speck and Gregory were purchased in April 2014, May and July respectively, and their net sales amounted to US $13 million 800 thousand, $117 million 700 thousand and US $34 million 300 thousand respectively.

By region, net sales in Asia reached $947 million, or 12.8%, and its growth continued to be driven by the success of Samsonite and American Tourister brands and the Gregory brand acquired in July 2014.

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Among them, net sales in mainland China recorded an increase of 11.1%.

Despite the impact of exchange rate, although the preferences of distribution channels changed, such as the share of department stores gradually shifted to some short-term pressure brought by e-commerce, China's short-term economic outlook was uncertain, which led to a slowdown in China's growth in the second half of the year.

As the number of mainland visitors in Hongkong decreased, net sales of Gregory brands should be removed, while net sales in the Macao (including the Macao) region dropped by 1.5%.

Timothy Charles Parker, chairman of Samsonite group, believes that the day of China's growth in 20-30% has passed.

However, the group will help the group reach a double-digit increase in net sales in China by changing the sales channel strategy, strengthening the combination of non tourism products and expanding the coverage of the mass market.

Second, e-commerce is rewriting the rules of the market, and the group will speed up learning how to profit from this channel and how to maintain relations with key customers.

Ramesh Tainwala, chief executive of Samsonite group, said in its annual performance conference that the growth of the same store sales in Hongkong slowed down last year due to the strong Hong Kong dollar and the decrease of tourists. It is expected that the retail prospect of Hongkong will still be challenged this year, but it is not pessimistic in the long run.

He pointed out that the number of outbound tourism in the mainland continued to be strong. I believe that the growth momentum of the group in the next five years is mainly from the mainland. It is reasonable to believe that Asia will maintain double-digit sales growth in the next five years and will continue to open stores in Asia in the future.

The group agreed to buy Tumi, an upscale business travel products and accessories company at $26.75 per share, with a total purchase amount of about $1 billion 824 million.

Last year, Samsonite group further expanded its brand portfolio.

In February 2015, the group's subsidiary completed 15 million 800 thousand pounds.

And the acquisition of tourism accessories retailer Rolling Luggage.

The acquisition enabled the group to successfully enter the world's leading airport retail business and further expand the group's retail portfolio.

In September 2015, the group's wholly owned Affiliated Companies completed the acquisition of almost all assets of Chic Accent of Italy accessories company with a total of 8 million 500 thousand euros, and assumed a number of liabilities for Chic Accent to continue its business operations.

The acquisition allows the group to acquire 31 retail outlets in Italy, focusing on selling premium accessories, women's handbags, suitcases and business products.

The concern is that in March of this year, Samsonite group announced that it had reached an agreement to acquire Tumi, a high-end business travel products and accessories company, which currently has a market value of up to 1 billion 400 million US dollars.

According to the data provided by the group, the group agreed to buy Tumi at $26.75 per share, with a total purchase amount of about $1 billion 824 million.

The paction is expected to be completed in the second half of 2016.

Until the paction is completed, the two companies will continue to operate independently.

At present, the Tumi brand is sold in about 2000 distribution points in over 75 countries.

Samsonite Group Chairman Timothy Charles Parker believes that this acquisition can completely pform Samsonite, Tumi and group's business is absolutely complementary advantages, the brand will significantly change the business scale of the group.