Citigroup: Lowers Samsonite (01910.HK) target price to HKD 19.7, expects continued earnings pressure in the following quarters.

According to the Wise Financial APP, Citibank released a research report stating that Samsonite International (01910.HK) saw a 40% year-on-year drop in adjusted net profit to $52 million in the first quarter, falling short of expectations. This was mainly due to high base figures, weak consumer sentiment, and changes in wholesale timing in North America leading to weak revenue, with operating deleveraging performance poorer than expected. The bank predicts that the company's earnings pressure will continue in the following quarters, as the impact of tariffs on consumer demand and profit margins persists. Management expects that despite a lower base comparison, second quarter revenue will still see a mid-single-digit decline year-on-year. Based on a more cautious sales and profit margin outlook and tariff uncertainties, the bank has lowered profit forecasts by 22% to 29%, with the target price reduced from HK$26 to HK$19.7, while maintaining a "buy" rating.