Samsonite set for over 20% earnings growth

Thanks partly to growth in Asia.

Barclays Research noted:

Growth mildly behind our expectations; we have lowered our 2012-14E earnings estimates by less than 1%: 3Q12 revenues came below our estimates by 4%. Growth momentum across most regions were in line with our expectations, except for Europe, which saw slightly slower than expected growth at +3.8% y/y in LC, and the new acquisitions actually contributed less than the c.2 months we had previously expected.

Asia drove growth; other markets continued to gain share: Asia drove LC revenue growth at +19% y/y, with points of sale additions and American Tourister growth. North American organic growth held up at +10% y/y, driven by strong product replacement demand from wholesale customers. Europe was hampered by widening declines seen in Italy and Spain, but LC revenue growth excluding Italy and Spain was strong at +10% LC. Europe’s strong growth was driven by positive sell-through of new products and strength of the Curv cases. Latin America was at +6% y/y LC growth.

Growth intact: We expect 24% y/y earnings growth in 2012E and continued 17% in FY12-14E driven by growth in Asia, global market share gains, and the recent acquisitions. The company also maintained flat y/y EBITDA margin guidance for 2012E.