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Dow Jones Newswires: Samsonite shares rise after posting swing to first-half profit

Shares of Samsonite International S.A.

rose in Thursday trade after the company reported interim results on Wednesday after market close.

The luggage maker’s shares climbed as much as 15% to 20.60 Hong Kong dollars (US$2.63), taking year-to-date gains to 26%. The stock was last 12% higher.

Samsonite reported profit of US$56.3 million for the first half, compared with a loss of US$142.5 million a year earlier.

Net sales rose 59% to US$1.27 billion.

“2Q22 sales and adjusted EBITDA margin beat our estimates on a better-than-expected sales recovery and operating leverage,” Jefferies analysts said in a research note.

“On the back of good performance in July and Aug to date, the company has raised its sales forecast for 2022, with a more positive outlook,” the analysts said.

“Recovery trend has been encouraging, with effective cost-saving exercises and cash-generation initiatives,” Jefferies added.

Jefferies raised its target price to HK$25.41 from HK$23.91 and maintained a buy rating.

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