Samsonite (1910 HK): Downgrade to Hold: Biting the bullet

Research evidence excerpt

Samsonite (1910 HK): Downgrade to Hold: Biting the bullet

%) 18.8 16.7 16.3 15.8

What does it mean for Samsonite? Considering these weaker demand trends, we now 52-WEEK PRICE (HKD)

forecast FY26 sales to be flattish (versus management guidance of low-single-digit growth 23.00

and Visible Alpha (VA) consensus of +1.2%). Separately, we acknowledge that the

17.50

luggage industry has become increasingly commoditized, and with limited barriers to entry,

competitive pressures have intensified. The group continues to face competitive pricing 07/25 01/26 12.00

pressure with its budget brand American Tourister while its premium brand Tumi is Target price: 15.00 High: 21.50 Low: 13.38 Current: 13.60

systematically losing market share to LVMH-owned Rimowa. Finally, to decouple from the Source: LSEG IBES, HSBC estimates

volatility linked to travel demand, management recently shared their willingness to double

down on efforts on the lifestyle bags category, where the group has only c3% market share Akshay Gupta*, CFA

compared to a mid-to-high teens market share in the luggage category. It’s likely a step in Global Luxury & Consumer Analyst The Hongkong and Shanghai Banking Corporation Limited

the right direction but will not be an easy path given the fragmented nature of that market. akshay.gupta@hsbc.com.hk

+852 2974 2980

Taking a pause: We cut our TP to HKD15.00 (from HKD19.00) on lower estimates

and a higher WACC, reflecting a more challenging travel demand outlook. Our TP * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

implies 10% upside and we downgrade the stock from Buy to Hold. While shares are not registered/ qualified pursuant to FINRA regulations

trading at multi-year lows and a low valuation (8.0x PE 2027e), we are taking a pause