Despite the fact that Samsonite has posted a profit for FY 2015, the luggage giant has said that its outlook for 2016 was still uncertain. The warning has been issued by the company on the back of growth slowdown in China (a key market for Samsonite) and a stronger US dollar.
The firm said in a filing with the Hong Kong Stock Exchange that despite a tough trading year, it saw net profit rise 6.1 percent to $197.6 million last year thanks to record revenues of $2.43 billion.
“Our business has emerged stronger from 2015 despite various headwinds around the globe,” Samsonite Chairman Timothy Charles Parker said in the statement.
However, CEO Ramesh Dungarmal Tainwala said the outlook for 2016 “remains uncertain, with challenging trading conditions expected in a number of our key markets including China, and the negative currency translation impacts from the strong US dollar expected to continue affecting our business”.
The world’s second-largest economy expanded 6.9 per cent in 2015, the worst performance in a quarter century and a far cry from the years of double-digit increases. The country’s luxury market also took a hit from a years-long corruption crackdown.
“It is undoubtedly the case that the days of 20-30 percent growth in China are over,” Parker said.
Shares in the company ended the morning session 1.54 percent up at HK$26.30 Thursday.
The warning comes after Samsonite earlier this month said it would buy US luxury bag maker Tumi in a deal worth $1.8 billion, which analysts said would provide a foothold in the still-lucrative high-end market in China.
The move follows the purchase last year of airport retailer Rolling Luggage and Italian accessories seller Chic Accent.