American luggage manufacturer and retailer Samsonite International S.A. is seeing a boost in profit due to strong sales in China. The company's 2015 net profit reached £136 million from the total sales of £1.6 billion.
Per the end of last year, the net profit grew by 6.1 percent to £136 million ($197.6 million). As for the total sales, the company hit its own record at £1.6 billion ($2.43 billion). The Chinese market is reported to account for a significant part of the sales. According to This is Money, net sales in China increased by 13 percent.
The Standard noted how Asia is a driving market for the American luggage maker. Excluding exchange losses, the net sales of 2015 hit $947.6 million in Asia,12.8 percent up from the year before. The growth is bigger than the sales in North America which only brought $811.3 million, or up to 7.4 percent. Online sales rose the most, up 40.4 percent to $205.8 million. While the company's outlets in China has enjoyed strong sales, Hong Kong is considered as the most challenging markets in all Asia due to the strength of the Hong Kong dollar currency.
However, in a filing with the Hong Kong Exchange, the company revealed that 2015 had been a tough trading year globally. In the statement, Samsonite chairman Timothy Charles Parker said, "Our business has emerged stronger from 2015 despite various headwinds around the globe."
Despite the strong sales and profit increase last year, the company acknowledges an uncertain outlook for 2016. Chief Executive Ramesh Dungarmal Tainwala said, as reported by The China Post, that the outlook for this year "remains uncertain, with challenging trading conditions expected in a number of our key markets including China, and the negative currency translation impacts from the strong U.S. dollar expected to continue affecting our business." The emerging markets of online businesses are also seen as a concern to the company's business.
Meanwhile, Samsonite has just reached an agreement with American luxury bag maker Tumi in a takeover deal worth more than $1.8 billion. The deal is still waiting for shareholder and regulatory approval. Last year, the company purchased airport retailer Rolling Luggage and Italian accessories seller Chic Accent.
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