Thursday 29 August 2013

Samsonite plans to raise prices in Japan and India

Samsonite International (1910) plans to raise the retail price of its luggage in Japan and India by 10 percent and 7 percent respectively before the year ends due to their currencies sliding, chairman Timothy Parker said.

In the first six months, prices of Samsonite products in the two countries was hiked by 10 and 8 percent due to depreciation of the yen and the rupee. The luggage maker expects most Asian currencies to weaken further against the US dollar. "The price hike in Japan will begin next month at the earliest. That for India we have yet to decide," Parker said.
Meanwhile Samsonite plans to expand its 50 percent market share in China to 65 percent within five years, Ramesh Tainwala, president of Asia Pacific and the Middle East, said.

Interim net profit of the Denver-based company rose 3.39 percent to US$85.09 million (HK$663.70 million) from the same period last year.

Sales hit US$983.6 million in the first half, up 16.2 percent from last year, due to strong sales growth of 30.2 percent in North America, 15.5 percent in Asia, 5.2 percent in Latin America and 6.9 percent in Europe.
Parker said Samsonite has generated adequate cash flow and is looking for brands in casual outdoor accessories. Shares of Samsonite closed 1.04 percent higher at HK$19.48 after the results were released.

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