Samsonite International S.A. (01910) gained nearly 4% in trading. At the time of writing, the stock was up 3.85% to HKD 14.57, with a turnover of approximately HKD 65.52 million.

The company recently disclosed its first-quarter results for fiscal year 2026. Analysis indicates that Samsonite's adjusted EBITDA for the quarter was $109 million, a 15% year-on-year decrease, falling below market and analyst expectations, primarily due to lower-than-anticipated gross margins. The adjusted EBITDA margin for Q1 was 13.1%, below the expected 14.2%, mainly attributed to higher-than-expected growth in selling, general, and administrative expenses, which rose 9% year-on-year.

However, management has provided revenue guidance for fiscal 2026, expecting low single-digit growth. They also project that profit margins will gradually improve from the first-quarter level, which is viewed more favorably than market concerns had suggested.

Further analysis notes that Samsonite's marketing expense ratio for fiscal 2026 is forecasted to be 6.5%, peaking at 8% ahead of the second-quarter high season. In a positive move, the company announced a $50 million share repurchase program, equivalent to an approximately 2% yield, which is seen as a supportive factor for the share price.

Additionally, it was reported that Samsonite's first-quarter net sales at constant exchange rates grew 0.4% year-on-year, meeting expectations. This performance was primarily impacted by geopolitical factors in the Middle East and market conditions in India. Excluding these effects, net sales would have grown by 1.6%. The decline in net sales in the North American market narrowed, while the Asian market, particularly China and South Korea, recorded strong growth.