Samsonite International (SMSEY) 17 Aug 222022 Q2 Earnings call transcript

Good morning, good afternoon, and good evening, ladies and gentlemen. Welcome to the Samsonite International 2022 Interim Results Conference Call. Please note that this event is being recorded. I would now like to hand the conference over to Mr. William Yue, Director of Investor Relations. you. Thank sir. ahead, go Please

with morning, few good time have for the much. Gendreau, Reza evening, CEO, And our to start remarks. afternoon, join yet Thank good Mr. Taleghani CFO, to our we have Gendreau everyone to a present Kyle results. a taking will and Good us opening call. our very Today, you

I we're am for pick tremendously Thanks saw Slide recovery thanks everyone joining for step you us. give the would sales here William. color QX, in the half. to excited up of into as say on be X clearly our deck. we reporting Great, I QX. I'll some momentum, And we to continues

close year increase XX% XXXX. to X.X Our period, results same first of half billion, over of -- were XX% last a one sales decrease and versus an of

build really walk in that. of international I which world's QX particularly most continuing seeing has exclude the slowdown And So had up. across the about months to the we're travel we're down each China, restrictions half half. slide with are lockdown numbers what demand versus seeing an XX.X% China, on the through we're several first a picked in momentum. month we're travel if We're a seeing last quarter, you on excited or seeing. from and into QX Each an tremendously numbers improving XXXX and our I'll that our went trend trend improving

our slide business. some XXX QX, I as XX.X% the had And be to pushing. on but we the into be continued QX very versus momentum at half close even in which guided Our historic where line largely gross in for we've continues gross profit have levels, build still we doing to that last very, margin strong. basis margin with from well we'd a it's points XX.X% to to increased were year restructuring

XX.X%, what excited and for the we've $XXX our quite EBITDA guidance full and seeing. Our adjusted actually adjusted set about ahead for we're margin million We're EBITDA year company. the of the

catch feeling position of sheet up on the improved to adjusted slide, how the also we've I business our number know that get in our last really done the job, Whereas actions into this we're through And the next capital by we're the supporting as you recovery up right inventory in be seeing. for in a year. ongoing been last the of side liquidity, we're few kind half to at continue growth. to lastly, in invest we let but billion the chasing, in steps really I'm and we've year. still and a for tremendous Page sales pockets We've it working EBITDA inventory a business moment the still underscores from pandemic, just overall of entire the to are signaled Our recovery. manage, liquidity. and about earnings release, set and cash of really position recovery. $XXX position ourselves the balance taken we a cost $X.X on the almost is able we're the business then all million from second mean we the sales Effectively to tremendous have how continues with X, line really the

as positioned So well travel rebounds. really we're

passenger the side. have And recovery the mile. of we're recovery of playing travel plenty little the at on travel you this that shows chart that The is the just and have our really on here June from innovate end whole detailed to calls, chart I And a demand. miles passenger in think there's last slew this I've we still out on the historic in XX% I at all have still later. but is our a we of to are slide first first will few of Even our half how go. a thing per indicated back give to show some product. down just year products. I continued the We, continuously really brands clearly, across positioned improving well other products as for we've color than pages more of normal capture with more half amazing revenue

which work structure really historic the numbers in on ways. levels really a many demand manufacturing of a the enable we're as working to even advantage and exceeding Our products, early in teams adjusted boost levels ready cost up this. set EBITDA with to think all as taken I competitive see business and we've really the together. you're of QX are profitability in off focused deliver and We've back the action be And satisfy really in we're seeing, I diligently really historic And back margin really on is, taken really our you'll We're approaching to to or our we're to efficient this second. said, ours.

surpassing for said, our So think the at us, a numbers had in XX%. this this QX the coming of the I levels. versus recovery side really we're our talking still down work. period to took you dip gross be pressures just sense year, delivering the numbers to but on China which I are, are historic at is really at XX%. out, XXXX, we amazing are China our had China, On QX shy second, noise the cover we're down in all the so team's in about, QX as had what EBITDA the looked here and are X, of at in And QX levels seeing was a recovery. a business about point. gross margin, margin, to XX% just And margin a for of down if you And historic If I'll XXXX. of in of adjusted Slide time you when give testament margins

progression those July move bit month quarter move kind you by and we and in you August, the as the really this month, a quarter I'll So by direction. continues right I just to in if see give showed and of can you

Our momentum it's is QX which adds the I momentum QX XX%. across back in to China, world. really continue, negative and up as sure, look better is July picking sales at August. in QX growth say And for would down a story we

XX.X% but As our I of gross even improved margin gross XXXX. QX, our margin versus QX XX.X% better said was in in

in And And advertising this that's well. push getting progression We're close the to starting with can margin margin quarter. EBITDA adjusted $XXX.X in really and on at the as X% million, is to QX, side. we're QX on see the quarter, advertising Our you the XX.X% million from $XX in second forward up X.X%. here

with step EBITDA that So margin up, really historic is levels. at even the

replenish million have of our to positive income QX, we're million. and QX, up the ongoing positive in We're We cash net that raising in efforts quarter. flow $XX generating in generated with and inventory we despite bringing $XX cash inventories. And even

comparison really, half you here. the momentum maybe the my tone, really messages first to tell, X, So is One On can by XXXX. we're Page we're as two seeing. of really XXXX excited about

equally, sales. we point in the think almost one billion $XX year see tremendous we transformation to see approaching levels, a sales half is I $XXX so But million. dollars are our XXXX, from million And EBITDA compare so from $XXX not EBITDA of XXXX if more XXX million just sales million lower. first when in XXXX, $XXX are important last you at on to went can million you of shy really can -- loss of million So X.X of versus XXX that

it the at the a So sense what's you up the for of bottom of when gives side page, with margin able margin EBITDA can we've profitability on see points look the scale been move of side. over the And XXX happening EBITDA you to basis versus business. the XXXX, on you what

tremendous really So again, progress.

at this If region, gives same period. you progression little X, over a color bit okay that to you time of by Page just you the give and look

Europe, even quite numbers down get when we can moved see two has every maybe are that you or So to XX%, when different region look XX% from at QX. XX% we

North just the continues. XX% trend in that So to business in QX, American looks down close down good. XX%, July, was as August XX% down

slower has clearly can Asia been recovery, you see recovery here. a which

can been XX% around XX%. has down we're to running quarter every progressing. you see And Asia

out, For number July July take is down important at XX%, China do, okay, down which our to a because XX.X%. I China is versus QX XX%. down point, If inflection trades different are

travel heavy moment where to So running to to year. really in QX, In which tremendous around were that August, XX%. come. Prior down QX with get still had I down been to back a to July had in XX%. I XX% China when and And down was progress from around some it China, get China's we last recovery

some a I So, color Asia tremendous can to has the move be have some starting and you well been Asia and to see into by countries. continues lens of extra Europe really tremendous. on different as

in carried X.X% So about this XX% up July you remember up XX%. is at I then we momentum. But XX% really same, XXXX. last QX. the progression year still that QX, rapid looking heavily to to ended into the pretty reporting see started is the down latest time around rapid our acceleration QX acceleration. was with to view in to Europe can see up

that. can I bit better it So than think probably a be

So a really amazing story.

and around but numbers really teeming for and up moving year. Argentine are really Argentine exactly zone, Europe, tourism territory, same. period, America took the If And at then up numbers with trend quickly story the people that There's back some Latin you Latin inflation it's amazing time haven't again. that really, the in continues. get here XX% I own of and is of America Latin to to or an XX%, and are end in America, trending looks XX%. booming If the been positive of around about his same July last noise the travel inflation

all Slide helpful just regions. within really, I positive Asia X, -- it's really to thought, momentum a On So give color okay. little I across

really at were last They a see how And two they the So And you see QX. traveling rapidly quarters. XX% you quick XX%. restrictions market XX.X%, improving removed, is And really can down came the can to the off really Australia do can move. and COVID see as year. around to markets as testing, really, you're you need from in last down improving were like July

is can this is is and in from India been amazing turned of can which XXXX. an Southeast dramatically you today, time. like And Thailand, improved see on. world And up. in story. back kind Asia, are really And which to we positive has really positive where India this has X% has territory. year running see July of the a opened ago it's markets you how part Singapore

it down and China team we're again then enhanced then QX, Chinese seeing If markets it where August recovered around a like might really as shortfalls China's XX%. India been back. I up crisis market and a And here up you South in lockdowns going China, into how India is and through teaming and step as that year that were they numbers travel testing but And really has Korea similarly lifted, progress see little But been but where really running position about down COVID see XX%. you slower down took energized. teams these XX% these see continuing And the last say had then trenched to can and July restrictions China remember a But And the Japan's debt. into recovery. to well. clearly in moving down to some with are real across helping XXs And as down last a that's the cover I down you of strong running expect move. was continue can requirements, But a little look I terrific from XX%. acting get the very real the still start there's The same their XXs Japan XXs. a India to will of story, of can similar, of kind reopened, a market July are you in and markets move as momentum. that's fast well. gets then QX, kind I of the they with and week, think in had India was are the to will in bit started continued

because we've levels So XX% what's XX% XX% business for structure. these the is And is the is down at with China to sales China. XX% margin the -- recovery what's left and making to EBITDA important adjusted really

this this country really Page way. XX, full is we've chart numbers all kind So, picture excited underneath again, what we're the been overall showing seeing we're of the of along, in at Asian level. On the a pandemic the

around Page little forward. that and see at were end key here travel really from release the us is will think international domestic you earnings year, travel international us. will in right a travel of what little we're things of for down bigger a for is was one, is on circled January it's green But remember, QX in piece markets. XXXX moving page, can a move travel, trend can year the for by seeing, a really the months, of see look this recovery the again, bounced signaling to last because which to in needle two gives for the just direction. bit. China. see clearly the starting think And last if you January And month of continue forward, months, every this what five months move start And we I largely And most six improve. that bouncing XX, at at COVID domestic us. important continuing the last on bit at you for I April is the and sense you to really say I'd you the had resurgence But few

we Europe So already way. positive were North in progressing really knew America and a

much really China you times I pickup on QX and quite to I our of to some think outside really It well. side. last driven can as -- to And I gross Singapore May, traveling and the you is clearly demand ability costs, This in. world. and implications actions really probably suppliers think important see but APAC we've that and in at for And importantly, But inbound the this you're will the approaching April, months. so And of all we the pandemic of not five through turning. catch this more that. countries further is the think of Asia lifted amazing. see I've both in has you in end, last at that and what's From the structure, managing promotion travel the period, seven June, me June, levels. in the one, on, been recent territory taken these months, exceeding discount, six, all slightly we're of turns cost on easier are if rest seen time things really of historic You right progression to in as start to travel historic move even this into restrictions we've seeing July out gross with but this can really around and the perspective, if more up And people see have can out manage freight but really is off margin PAC look costs really working markets. recently my August. margin numbers careful I benefits covered in the maybe levels the the freight at managing And all

to pricing that'll And sure of action So continue our then on business. here. make to the delivering margin we're benefit side

we've were Dramatic more And in EBITDA last had reserves than so levels I correcting back in as I as deck. it. on the of will business last inventories. the way XXXX the a hit this again, we good the flow is year allows to describe adjusting were chart the we would to year perfectly, first half think through increase the bridges year, we have And on business, the that from back the last

improving. managing lot Freight pressure, is this we're well. but and really the freight really to improving. with -- U.S. Inbound ongoing so it a of is is And

end we flow even better. at year of the the So tremendously in are getting goods, worried QX, about the is and of that

And up we're So work world. our again, continue catching on to base. the supplier inventory with really we closely across

is are this with you're to margin, us back airports. the airlines some One few of you On are demand of have Many challenges deliver pictures this of on a we continues. terrific. our the advantages XX, of probably of the on travel know, up, catch airports. real And which traveling, working them the if seeing, together we're as tremendous and call relationships this what these which is you Page despite of is push with

at airlines back of moving. headlines a putting planes -- flight I I some so in Logan India Boston, And wouldn't and there. British was these Cafe months the phone, talk with flights on that Two back Kong. have Air I bringing was week, plans Plane traveling of terminal is about going AXXX have is to back. the in fleet, and the last my with ago [ph] at to the back Airport Boston, picture been Hong Cafe

my a XX, it think think don't up we'll about of But for airports. business you at we're everybody. what bit what seeing slow the a importantly, I when a Page picture different little we're So are [indiscernible]. you're world think and we're the questions it. end, you Again, inflation, moving, here and I know, the think into traveling, even we is at there we'd of did are you're little to of doing will, my recession, seeing because with this that. a happening. seeing but get point months, we from business maybe worries what have in all tremendous travels think probably it's I this. if really delivering not even a six that's that seeing in surge bit, And moving, These And it is other I probably teams than don't in last less over will travel. be we're things pictures, if the seeing but the we're recovery as the see or it view, caring

some is is back Top country and talking our business. about all everybody Europe, team in at about at team for drive business managers to celebrating Latin This In And America You Chile corporate to where in a the team talking is been and what the This left, dinner can quarters. several and country things with and the American moving bottom started North the our America together eight we Latin Singapore, last at as have European our together. we're for team, together, numbers ago. Bottom together and as can we're left you getting seven, this going office on the reviews, sitting right really the are this opening America six, that and in Latin was Singapore business. right a was really together last see Presidents our here see, is on move. early the end months the is new of and Singapore, headquarters our there do the Asia that's Regional our team, dinner of managers year. top some

to the high. position is we're the I key goals numbers our Page today. our strategies. in all energy and levels still on On as teams them across focused can't seeing to you're what is very think deliver ESG on around thank the business, move these tremendously we've enough done what I XX, I

two well. last have people focused our to for We're here, again back You of that really and here. on office, be and right back doing the business. presentations committed to should around the all of work culture on be it very one this to getting response, talk On team that we take response, action responses, picture a And what business of focus most means proud meetings and extra that our on things flexibility, within get conducted the enhance. part we're eight on And our think in I like mantra targets in but this the here our a this to company Golden from an from working year. we we've business as members some amazing XX% it and we're diversity in every quarter and us we what means it positive can across overwhelmingly so very over continue team. our last groups moving engaged inclusion ever the continue the culture together. at shows as participation We're one very business, seven, that we're is of this or the We to And hear to of new are have D&I what with we teams as employees, the it employees in something Board here. Tremendous announcement slide, the to little with as engaging have back who of Directors the we our to we employees getting to some take top things together do as six, to really first the Rule are providing what months really well. of action seen survey a about the you female work of really XXXX to added would items focus cultural on and on I'm on things We've we with the start that.

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the with will think the cases, is So those successful. of This of which are just hard iconic one into relaunching which different giving of about openings, here, At talking We're Tegra-Lite boom I a launching because success first to business. the bag. huge and really Tumi We I with with tremendously amazing to recycled content this important inside for Page is technology Tumi. This into started and all launch the relaunch, the leaning at Tumi. fragrance Bravo has to Alpha Alpha few a side the fourth XX, Really the for lighter start that well business is a Tumi, advertising. relaunching driver real end be think will material, Samsonite, the amazing. the fragrances, was we're we're licensing tremendously within year, been tremendous QX. doing be Bravo outside On QX, I'm continues

is of QX. on advertising, we leaning get to half of definitely as it's recovery the -- we'll X.X started As guided, at in sales we're lean back we in. in X.X% the half, We and year, continuing, the first XX% QX we're

should launched advertising. of the going pandemics just some snapshot for developed around we've And we're a against X.X% we good doing seeing lot this We consumers, pleasure to lean both we're audience. forward year, across And of about half business back as the talking Really done back different the messaging but Tumi, during a and and half STAPLE. we've on full across that, Samsonite's of start increase within on a is again Tumi this super PROXIS, launched, be starting people year into advertising X% the put as the we're as PROXIS, the of types new the connections business, to amazing advertising. doing just and we're we gives us of real move to relationships, and it and with a in just awareness shy campaign It's for with which with is Across lightweight. pandemic. globe, that's brand for collaborations expect advertising for sense brands, RAZER You during dollars for year line you to case, something and step we're really collaborations now example, a of within PROXIS really well. the moment to an a number really

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turn Thank I'll So talked back I'll take really come the you. the I'll to questions end. at at fast. Reza. it end. I

we are Slide Thank you, And on William, XX. Kyle.

for better half. same terrific of XXX, for period first half EBITDA million line than the that's So knock-on inflationary well it trend of difference guiding And year, important been what cost the sure will have that happening that end QX the That's activity as last had guidance sure on the we'll the period. net of last in the percentage, get still that there. margin that half I'm basis the we of disciplined half $X.XXX And of into year, perspective, net a for I what's there. really gross billion in XXXX for income driven Q&A. ahead from get in it for from XXX and first year. promotional well that very us. for period resulting margin $XXX QX XX.X%, Gross as results by Sales, little very and bit largely great year. that later effect million of EBITDA and Kyle EBITDA at income the margin. will margin sales lowering pressures in to by first I making that generated into approaching noted, the the for on same see is between by points of last Adjusted because Adjusted first slide, and XXX gross terms the margin almost half think from we managing a a as we're already amount next are back increased increased

let's that, in So we flip And were at XXXX. Slide as to XX million to back million compared with XX income XX. net of

the you important. QX, Just QX I is this think line breakdown because that do very trend to and give between

if to compared and but for The on around looking in XX.X% currency good basis we this of. lower a if to bit, Kyle that the versus at down little a a So consolidated covered That margin sales something when compared looking on you're is about sales the were came XXXX, you're QX proud constant QX XXXX. we're very improvement is story sales. XX.X% gross at

percentage came margin XX.X%. So in we in were gross QX at QX, XX.X%. at

performing. XX.X% get and of in you'll as solid the see will that margin, terms the number, that subsequent EBITDA questions very on that with. for through of board of well something you number pressures it of that is that Hopefully, margin, the regions have that see know expecting obviously, some that you very and So for be across is can is slides, to at QX, adjusted we're what I increases cost we pretty remainder a QX, managed looking XX.X% the a the we were adjusted gotten of Adjusted million period inflationary to we're But we're the through regarding we've EBITDA And on we despite when continuing year. EBITDA very, and we in we're feeling. very have terms have. at of in we're much $XXX that laser-focused pleased

detail through to some these then So go some on and just greater of financial XX, quickly, numbers. going I'm on get Page into highlights we'll

-- reflecting again, we compared sales QX this And our again, currency a down have the is excluding situation XX.X%, also sales that of sales story down is to fact foreign some QX XXXX, and only XX.X% XX.X% that There they was there So translation China, XXXX. lockdown with number. overall the compared have from do by that's impacting improvement down which of to were terms in net there, because is and XXXX. of

front through effect So that translation and sales that's basically managing despite that numbers solid delivering we're well as on the very there. still

XXXX impact line $XX were basis higher half item. would than of we million to to first that if been compared on XXXX, have just the constant a you currency So sales give

That's million. talked increasing $XXX period territory negative margin to $XX targeted adjusted EBITDA going in So year this we've in and million about. by last XXX from the this million year for

XX. Slide XXX is increasing to fact last that Moving compared this of has gross points the to on margin half renewed. been despite first The almost the not And year. GSP basis

much for already impact. have So you gross had expected it's flavor million we something to U.S. even just had to $XX of that would seem give try year, rectified. a The that, it's of there to get almost government better been to this by doesn't renewed, happen been be but impact to movement the that, GSP this that

cost perspective, and Advertising that and had to half regard. in spend compared were slip the let get and compared that, over Fixed of laser-focused further we a we that the renewed of this if year. we basically even when were able first we we we're on the were later XXXX get lower last renewal. cost to million have our And don't program, that have in. do does about the improved net SG&A we cost So on from at some year sales structure stage are XXXX a we $XXX would X.X%. sure half, reduction making just margin to maintaining repeatedly that expenses, that comprehensive X.X% we our hope as Obviously, million SG&A said half XX gross to increased fixed by

will are to that we position. balance sheet we XX, advertising quarter, further strong expect remains very each investing discuss So shortly. in a and we the as On subsequent Page increase

debt So equivalents XX, XXXX as the debt billion $X.X cash XXXX. position over with of cash compares a of of almost net June billion and position, million that as XXth, of June net $X.X to and well

only position. delever Net about to is from million continuing improve to pre-pandemic our up and debt $XXX So levels.

of result liquidity we're So Significant everything think be if of that's and the remarkable focused about we've liquidity. of through terms half, to continue last over $X.X and you gone to think in maintaining that liquidity a year on our discipline of levels. terms in billion the course going maintaining I those

million. managed we're negative we're $XX cash generate that of come half expected that of had be have levels. increased inventory of had cash burn that the over we and in million, First because the though than QX even said consistently we actually this negative we $XX in investing going we we And inventory QX have Even We still to better initially guided. would -- inventories QX, in is investing levels, to QX number QX in.

to trying that a we capital after to trying but number by as remodeling we increased our starting sure that sure CAPEX. store positioned make openings, the $XXX that largely generated going of little very even doing still we're though to for it's look capacity, and of and maintain we're our feel of some very, warehouse the fleet to store that. We're as very make selective cycle. It's well million And lean million another really again, working proud $XX net in So well. on cash bit as of

a spend number looking at XX, Page the On the as America. well. currency as first quarter North CAPEX little is So bit we're constant region, been of in half for growth by it there's

XXXX, quarter year-over-year do currency for to by And at the You're have well. the half. the quarter. breakdowns see at progression XX% XX.X% just you after looking quarters looking and do versus if down again, the you're And translates constant steady you as that

largely to XX.X% is that trend North Asia, the been COVID, still continuing America, which down QX the improving that still by in trend. been and down locked driven in So laggard and fact and due down China has we In XX%, to were an improve. QX has just one

all down that drag some was we offsetting XX.X%, QX down other the So of XX.X%, of China Asia lock QX and down are that negative countries have.

XX.X% Asia. improvement. down massive Europe, was So the first for half

down So XX.X%, almost QX up was QX XX%.

Europe. EBITDA compared at EBITDA North same the knocking QX for down highlighting at compared first up improvement which America, for as And of On single first also there, compared Slide XX, show for chart you're the this just we that was that's to at out just bar is if X.X% looking the XXXX. a Latin it are another is half adjusted North to half in million numbers the for of XX.X XX.X% America the first adjusted half the for looking America. to year-over-year of every you're numbers, America XX.X% half, fact blending the the if compared overall XX.X% region, XX.X so period just million up to Latin So QX XXXX, XXX% XXXX, -- XXXX, region park, to

EBITDA margin. this margin. first in with the in basically same adjusted come XX.X% you to XXXX, half adjusted of first XXXX million XX.X% of to to an of XX.X XX America. similar compared going the million margin America, but with -- Europe, flip zero I'm clearly, same XX.X% flat North So XX EBITDA year if of half period last million over compared sort in performance, EBITDA Latin of to in for Asia to delivering the

is really really is that, typically So market our what only this the to laggard literally, highlighting has China. is Asia its yet is which And Asia, and basically highest-margin rebound.

will, when that optimistic well of really does to come China similar So even and margin it's improve we do can will it the as is the inevitably it's into regions next you whole Asia other Asia, the as because the to continue story, we're year. about future not tell, which this it expect business back, profile of a very literally, going

some is is sales impact. quickly there XX, Page Really, we'll through net the bridge. the here FX at message Looking go just

time of a to some but note tune due haven't to largely translation on are important effect $XX We to in about this, million it's headwinds we currency spent lot of that facing Europe. the

that what exposure obviously million and impact then Euro, underneath. of And then backed about to $XX We the highlight negative. isolate well. about to biggest that's we currencies the the the in the exposure impact see the now out is operations exposure obviously, fact one So of of sold. currency lockdown wanted Speck so the as Turkish of to have million Russia suspending to been and basically, of that China other just to the the you'll Lira, here. But had We've XX

So just story China you impact half lockdown. of first of million everything on business about the impact of And delivering. $XX over in the the in else see the then the

first the year. remains the XX, in to of can by Page first XX% of Europe, America, that -- channel. And X.X this number than improvement us almost so over from China, XXXX XXX% America, XXX% in well you improvement North XX% in in ex half in terms lead steady Latin more in On to seeing sales million improvement of improvement that you're XXX offsetting approaching billion mix relatively half Asia the kind those see

basically, more We opened is category, we But last so a continues we're the the of as performing. to now will versus perform The all high sell-through very wholesale as if starting have that e-commerce see to that shift channel for of And the at contributing that year the to fact strongly are the stores expect percentage. very seeing a you this that, year, looking given opposed within continue. us. stores are DTC channels that that are

sales, be I terms strong of versus has to very would say a of performer travel expected course over very, can this non-travel in for sort the travel year. the mix us. been So of continue

that just in that a of number travelers terms dynamics all the COVID looking XXX.X% the quick just due have and about, to that negative really have contributor you're million. coming structure done the That's our million On that XX.X what we was There decrease story as XXXX. cost XXX XX adjusted And to of of said at constant biggest gross profit XXXX, out be And going if then some management team growth FX obviously, compared see currency lower terms industry can disciplined in restrictions terms based XXXX the of lifted. well. way year-over-year million decreasing is Obviously, Kyle very to XX, sales. would in Page we the here there. million XXX You the very impact about a of variable fixed as a as EBITDA on there's around is component bridge. talked the being

for So we million that have half consistently million the that this we trying target due same SG&A for taken. story shared year XXX slide lower comes benefit. we of that maintain actions this for from XX half. we've that around Again, had fixed in that XXX.X benefit just component, fixed the comes is year XXX of the That's million just of to SG&A XXXX. a said story, to Page the benefit SG&A And past. that SG&A have than expenses, a

see expense we're to well prior that this that of ahead million $XX Advertising continue. higher we can year. You as trending than and well was expect

in QX doing to positive continued advertising, even So to our anticipate have increase of XX, cash we generation. the these half back Slide we invest the even advertising numbers investment and are though in that in year. further

still working capital, net going capital, you're working the So build cash continued free quarter. to positive we've see on delivering in net flow we're that to yet

you're of much this continuing the last sales that's to proud cash quarter rebound see over were the as started and to course how the that very starting over were well. So we we year, generate to able of as

quickly balance sheet. Moving the through

we around I'm questions covenants things that. -- and off sure the like there's sheet Now are balance and

are amendment through We the now period.

the talked we at the reporting but year. we're come almost now to are end same starting that So the It's so And number. the continue net our number cash. lenders debt, at same we to. about, numbers basically we is used to we total of obviously, have leverage identical And to as just cleanly generate we as the debt net down to

So improvement. X,XXX.X million versus XXXX.X million, which is an

about than by $XX So million. QX we're better

XX, increase ample to that different base, overall, something So is specifically this with feel On make as of get to high-class America about really that we working still regions, it's on done. straight our this just positioning like honestly, If inventory comes our in to North work we'd America ordered stock the warehouse do. stock through It's stock are capital, trying over trying Samsonite. quarter. We're manage. as Page continuing we well. ample we actively the the we better the position in, going sure did have. Quite have as to goes that be it have levels really, some we North Tumi, a we're the inventory to try as we the are that hand. soon There's to problem to out to

So of we're much levels we're lot our in get stock sales. we missing necessarily that more that a It's able not our levels not the warehouse to to want.

we're going so can to inventory as forward. Slide And you go really see continue XX. to on invest in we that And

been versus balances. the QX So million we've inventory versus able build, of year, you're QX in at XXX QX last terms million gone if XXX of we have to to million looking XXX to from

Page as have we And So flow. is invest to the little well. And also started is the more. better. On is bit it CAPEX, say would to quality improve cash generating I continuing we're getting still this again, of XX, a while inventory free

of that up. we're If disciplined ones invest stores doing has which little we down specifically, sure terms number anything, because many in footprint. renewals As we're our close the in come We're retail those There which a about net we haven't that you store being more see, been stores. in. store actually, come improving can and very making bit

that of product material we're a then journey science software. have ESG so continuing we a as There's in to of well. to invest to we're improve areas we on and to innovation that investment There's bit also we're [ph], of in And invest some continue little trying some and and sure going we're doing of CAPEX that R&D. lot them into litigations going the there. fittings we to in make terms additional sure new can our other continue However, been make as

then to So outlook up discuss turn about with for open we'll that, the Kyle and Q&A. let to it it me

Okay. Thanks, Reza.

higher margin. So as to well much at as are travel capitalize really I rebound, a operating I we think said on the really start, growth, operating positioned at the to continues

move we improving. focused really, July taken when step that's of deliver QX against into year, from We're on back So we're be stronger to back a see of -- something tremendously actions margin, delivering quite to month. the Reza. the of maintaining The really we're we you forward I the gross but up we're margin. margin each of stepping numbers progression I improving, positioned you that as all half earlier, advertising think QX, myself on all to said seeing, quarter. half the month heard despite sure really year. from really make August We And and the the as headwinds, the are as profile on maintain we'll And as to we've the

And it. gross my expectations are I exceeding on laser-focused margin say what would teams we're able on side. the Our own to on achieve

June Russia, note Russia exited and our know of quick business a in July on on closed that end Xst. did suspend that you as Just and we we the at March, business,

$XX often our profiles, kind as million of overall for and million at talking business a when you're some of numbers was $XX So looking Russia. $XX with we're Russia about growth of million, adjustments kind business making a around EBITDA. we're

COVID would this say to around policy. down a COVID we important saw that we challenge big QX. and what to XX%. -- fully to change is not we it's definitely I know running it's continues done think exited China blip balance, zero that I But So point. China a overall is a XX% projection. China with at But our on business to But be in for

have we as historic EBITDA the And those just job at of into margins delivering it's that profit was sheer the profiles are, different levels, an QX amazing the dollars. done July than aren't Before step looks it and that Frank what and team China’s August, same.

impact again think, move we China a our into story. as And I year, will And a get fuel will big to, piece starts QX. next I meaningful of it so China be to really as think

a XX%. $XXX us year-to-date around business is China million on scale, for is Just for about running that down

will imagine to growth, to So really mix, incremental intend Frank profit up into spend not along with advertising. as have it that back that our increase continues the and profitability create, catches team that profile and sales but only be to the We our as been the to gets our able recover. on

lean were So were moving. clearly certain year year. We we've markets as said to We last markets into that. started this cautious

QX as things and So we Europe, for North start. some sure. accelerated into were could moving, felt we America, We've things

For sure, profile see, levels slightly you'll back be profile, back, you'll in see somewhere delivering a story margin ahead back EBITDA gets which on what EBITDA step with still will incremental side. advertising X% we're but X.X% an the the even up to half is margin maybe around historic And of the not our are. what margin there us

side page, Reza last the On the covered it. expense

We are guidance. ahead expectation of really little tremendous and in executing bit on way, a own our our SG&A

and way. on that closely fuel resources spots that running that of again. will start there strategic to move visibility in which million profit do the savings And we decisions a well, year. continue. And the continue are half resources will fixed very really that disciplined The to think about adding what and we our clear across into with year, to that resources into working because And we're $XXX have We're making this our add really, improvement, last I think business and profile do. cost will back strongly. I in continue really we that, again our I we where we're we teams investments as added of are need globe talked very as XXXX

we we on investing. capital, As said working are

probably quarters quarters, every dollar at a but sales is quip. You'll our are for next growing the three two similar see inventory quarter the growing,

logistics, the anything, It's to profile it's success. So bit were we're on the in of right getting continue There the the not we're good in just But we're right moving. yet, fast having teams is forward at will having and a Europe, and markets If getting containers moment, benefits perfect issues shipping getting get on unloading well Supply but issues our because ourselves it into improve. better. enough side. but inventory to working the pushing very the of with is capital all spot, have chain like and we're better position been that. that

sustainability bit We've along gain on flexibility, and and our We But to market be And a teams, achieving. really journeys teams share we of to what are our our largely focused well really and drive all our little be workplace with teams ESG with market amount like have liquidity. to sustainability focus globe. continue effort, our laser and then many focused position I the our have and business lead across and positioned really the of done of innovation, are happier in we're people added team market. lastly, the a significant reality on an in-person continue and work. to with are very foster focused, our back can't the we very is engaged. on We're

that through so we business other of is within business navigating the now is strengths we're moving hand, now the puts the wonderful well from to last sheet that forward of I real position into recovery exciting. recovery with fact and drive us balance of in say, the and we levels, historic on in out as side One mode, delever see continue a growth pandemic business the industry the very clearly the years really to driving actually would stepping, and which of sitting our moving that the real had we're liquidity few

So We're happy take to very that's update. questions. our

take back we'll it questions. a and turn you, might to William, I So few

Stanley. now Starting we for open Morgan your much, Thank and and floor Wei comments, from you Dustin with Kyle very the Thank to Reza you. Q&A.

you. Thank

Dustin. from ahead. First comes go question Please

for taking lot questions. a my Thanks

first margin half. regarding The is for outlook the question the second

the The X.X% EBITDA second for second increase the should really quarter half, versus A&P margin half. the mentioned ratio continue not better Kyle than margin leverage because and half, but think can first first to to of how -- -- the was lot about the but kick it in is strong, in is case operating that a seems sales like maintain suggest the GP that we the number possibly largely

quarter, about? the margin half So kind of in versus second price then you that the is the XXXX? your could of key with second margin customers the us similar for level of the give line, look pricing with at should the update on sort year think the that EBITDA the And we along an way negotiation suppliers and regarding

Sure.

with So strong see work the but QX starting points maybe clearly to in margin that you'll a it's full a of advertising, bit was half. us X.X in advertising put EBITDA back, back more

that full around of year continued, we're start the as in recovery we clearly Dustin, hitting think XX%. side. year the really and business the overachieving be guiding, at were margin I that would the the on QX We're

half, the back assume at that next which question, So answers pricing gross maintain into carrying be the for margins the they're and at. kind levels should we'll year. will of It you half back

reality and a suppliers, has with many margin. them probably the the gross margin Asia on feed obviously, positioning margin to than, We're on gross very for say, has as slightly really in the elevating margin. continue which China on India as upside. our covering work higher discount will the working position, side. to cases, sales to We're maintaining price, everybody and side, good positioning in recover, The let's which has starts we're on using in With brand promotion that's really manage a during careful some our and is, been with pandemic margin

this view margin we that full now gross personal with at so together, pricing, And even guided our to is on the is ability got through, of to XX%. things and a XX% I be XX.X% the year the able lot favor deliver And My even at good to business to in in here the think discussions year. full margin. Well, will for step-up margins historic blended carry advertising, feeling on in the probably we're our very levels. maintain we've EBITDA

that take And there. and kind pretty so means you feeling confident half. I'm what can of And the understand back that for

conservatively. you know, As guide tend to we

allow savings, -- benefits this strategic full back just that and modeling, advertise, make the spot for to with We SG&A come really you talk I'd the an a so on us think levels. in with as I historic gets continue China and really is which expect is about sitting half recovery to was in in say, decisions historic first allow improving would still will of levels I lockdowns the that what benefiting covering. With I upper to business was end where come, trend we're the think year, some should So for to wonderful range that to us business. assume the revenue you which you're SG&A, in

some work of China again moving that gets in. As will back

perfect a in it as line. which to investment There'll as be percentage of carry be will won't well. continue will recovers, SG&A where some than revenue be So better as but SG&A, But was a dramatically improve in sales in still, SG&A XXXX.

all So XX%. guess, has that said I ago, would of year pretty I a me have confident. feeling

the is end heard you for sights in what North you. year, the is range higher of me say clearly of full XX.X% the I've think given on I our probably

the price next for we negotiations of terms should year, In sort of...

It's ongoing.

the So dollar are margin is buy of dollars I'm side a There's ups and helping with we'll Currency margin. is the maintain you of negotiations actually downs. the so lot in what on guiding equation as well. going fine. other gross we strong Price

Europe, do which dollars some in So still it's an like markets are there, advantage. hedging but we buying

at moment. have benefit So for us you currency the a that's

have We pricing allow it's just all levers so many working our to margin. real not confidence levers, get some gross with in to us ability deliver on the together a that discussion It's of our suppliers.

operating I look historic would fully, levels is on a which than margin. little than modeling, gain a have gross pressure even higher will at lower because the some the to way in positive margin on get still China upward gross into has If back anticipated. understand your margins QX, And that maybe Asia you again, really you're doing what have little at Dustin, a when the

are going takes or of at is happening come a one And that And we about to is it the because of it relationships looking Dustin, same the component taken cost well. to have. helps obviously the structure pricing really, know Kyle to you the what's we are of at inflation, a we've right? these cost simplistically, is covered costs go buy automatically there are puts because as you're is action lot as is next again, I time, And dollars, us. huge faced up think biggest that ours. and FOB then in to long-standing freight The with is up component actually But going that have product everyone is of actually go starting really down. That

it therefore, costs So more, up. prices through have at it how it's say went costs years, a go the you've not all. Oil us up, That's we that you engineer. heard input like value of works linear. not it's sudden, also all And

And toolkit able so in many to we that. to so have tools different maintain our be

of and So forward we have gross a going confidence high in margin that degree year. terms of next maintaining profile

I to would was Dustin as as many XX say relationship This our year good ever XX too. is relationships, a relationship relationships. perspective, just our to from suppliers

tend So here you the downswing, work coming sourcing work just relationships that into this. get discussions would in us and that work the issues upswing, that teams, of and say sales place. better driving all sourcing that work the that are now. that those the said to at when teams the we're in costs underneath not on things it down is this really the every helps which really are on suppliers, our right to our place call, with that of I I our these so logistics horrible And with much getting help right tremendous amazing and keep but piece profile of Freight you're deliver probably together missing margin imagine all theirs in are our so is goes with

don't I real relationships. this underestimate long-standing these our advantages is So of which that, marketplace one in with really

the inventory Yes, the for And of management. regarding my is thanks question rest lot a that.

a in other there a year, was in they excessive think from now too we heard consumer especially market, much And little Asia there out inventory, U.S. some last the calling are chain booking facing supply first issue I double when this categories, half, some inventory. bit the in in retailers year.

to need extra So markdown. do they now

overstocking what's for customers seeing the thing sort business, our in do are in you your wholesale situation PDC who your ahead. look business, ahead very strong sort yes, -- of that avoid and channel? own for And sentiment their would how and inventory? And how same So go you Samsonite sell-through of avoid to the also,

an it's in because as I issue it's selling get would it. you, tell they can our not through category, fast as

see stutter-stepped few we in U.S. story. on is So did customers a This U.S. replenishment a really the

paused because And our less, can't to month category or and so the they they on might for have ordering they're then shelf. back keep a

side, cash to some see through clearly looking catch flows. issues. inventory continuing They we're to our But manage so pressures, been And people maybe up. inflationary on we've seeing ways

even from ordering perfect in they're I over-inventoried really the even manage inventory the but within with numbers, They through are probably think step ours QX from yet. to because cash them is the we in our forward. we inventory in clearly kind port not actually a stutter and most so those might moving is They're notice is which when our numbers. And floors, well are leaning that, we're they're saw isn't And customers their can't saw whatever ours the of goods position, reality in their of direct categories show and because products. other good position in flow In you be which we they causing overall and cases, them. many chasing shipping taking on you

within when timing there are a ship it we the of to moves sale so next it. to But things continues very getting of might just the I'm But We're in we're to about category our where and not a worried because moments So the not month month miss strong. with on our are customers watching it it. clearly the balance, and on be a in -- port.

it's issue so not us. been for And an

this sentiment very the category media end are the fact the that good -- about your you or continue recession the say despite about that year So of wholesale travel talk have customer, still would customers XXXX? key to

really I We're travel moving if slowdown. on it starting sure. actually they're any is The under world their watching to traffic. reality get travel a you We're the driving happening, will little the down think look August. -- Yes, media, fleet see inverse and you costs they Because whole as seeing because of it, seeing And because it we're if will I but trying in seeing bit come not at stories really for seeing you're you're watch, is obviously. any travel are not month-to-month. weren’t if you, we're there impacts of slowdown even to on we're think we out unless fish see some seeing continue. pace won't in for not our even the seeing the recovery accelerate recovery side that We're July, the anything accelerate

next think, September much travel get as the travel in. but I My view recovered. been business is sense more into work My its has to recovering, will we year, is be business it's start still in fully and same. not way see you'll QX

going you're travel the have really season. strong holiday to think I

resurfaced If it with I January, in variant was the okay. delta you a at had remember year, last time, think COVID and -- December

so as I well. year you'll enhanced And this have travel holiday think

travel. enhanced for but think have holiday travel visiting families, pleasure, not I pleasure only you'll

we're of in protected. recovery my about, And talking should it showing down our pace. are view. the inflationary balance, not even And with well I all pressures so numbers at travel be again, the on think some slowing that That's

that’s helpful. you Thank much. very so Great,

Great.

on move questions from we a have from to we Before of Huang. Macquarie, other Linda couple callers

the full recovery in and if to quarter? third strong strong wanted our in strong guidance, we this The She we given continued guide from off going travel. see year -- year first into to one, your comments far the seen the that line leading so have about top performance going are adjust

want view to our I of the Well, don't take is think business, publish our and I really which say kind I continued because been across of way I it. to really you August I've I indicated momentum out, have them numbers, think the Surprising is can would August, we August. but Yes. increases numbers, in finalized our as if dramatic you describe has July see deck, July well. into improving. August improved haven't August China continued all

will that September. think I carry into

our look trends be very does and still I is think to almost Again, what into and get will customers strong. You our QX our QX wholesale view are continue Dustin's buying. these like questions, customers

very trends Our strong. are

can Our sell some product faster in, than is strong. sell-through very in sell-in of The is cases. we

be to very continues it strong. So

we digits, half. the year, sense back year, and to going probably trends is year, year, based half the was better in the think down for it's XX% clearly were again, than for XX% there's we're The is better mean unit is will a next guidance America say, is Obviously, lot William, not the I and back recover continuing you to continuing the at I'm to will next in Asia and XX% we're give for between channels to would of what somewhere first lot be number and the probably Europe back if companies to of the more lot about the airlines fleets that clear a the mid-single for XX% to U.S., ready I year that a my some the saying we when travel inflation year. perspective, in think sales And we're than build really wildcard where would which just full around but go. next half there's growth fully there's very to watching, What's dramatically the out of and I Latin on conservatively, started full down range, seeing. will and a kind and trend next adding to look perspective aren't the yet. think routes from be headlines, unit and And actually our to it's from to move, to for think strong. me continue continue work grow. I year a is because

that growth ready that The down so than still miss everything have good travel business. we're think, story. And year, done continues, that so positioned, other which is June a all really we'll recovery, as to XX%, we're view I I'm story William, we'll to to teams going that travel. there, the the that's for well the not I international including next said is mindset. I of so be think rest anything. a right we'll are business, good technically way XX%, right my not but going fuel, If a of give pushing the in kind product, advertising, we've in And on I We'll think be the be like

had continue. and mid-single trend So the year, I for because back to should guidance the the expect But you is half which back recovery, down the Asia’s think bit that are half, a from an the probably I think to improved we clearly in of for improving digits trend the past. we've where ongoing the I of in think

very from have you Thank online, HSBC. Thank on you. next we much, Kyle. And Erwan

Hey Erwan.

HX, Picking a even XXXX up down digit in above conceptually, single on a high that comments, and QX, that mid-single if possibility? flattish to could in in digits you're be close or levels is tad down QX maybe you

to got for QX. out Asia has play a down is way periods it China moving in the bit playing faster Erwan, conservatively, out. of Yeah, still we're both kind because digits is mid-single story a probably

I that right it is the that's really reality But trend. that's and without the I does. think hopes some have exactly that

think QX looking QX be a bit QX, better really QX but than -- QX is I and could really terrific.

Asia you to could range XX% little But off And being being And draw in kind consistent I down of waiting year. the we're to this really probably that. full you're move. then more than kind think conservative of to last a full bits so year, line, start of far XX% for the for not the you're from

Yes.

Okay.

having few to One maybe you it's years sense? comments any just it not on potentially any probably something another i.e., comments make a company, looked Hong again, months? still in I maybe a sense like? So get X listed in or -- you're [ph], questions. now, XX Prada listing. there global unrelated do whether just past. I'm And can on second had the market is to would comment a at a making I you've wondering looking than the related the market, And but share Kong in consolidation, what and about for question, dual ago think competitive to two company taking unrelated landscape is more if that, how know not now on the potential much you

tell in But still we're a well where my market. I you Competitively, sit, we're Yes. would think I I -- competitive from positioned.

and my our kind is you and distribution and inventory of which focus to on If tremendous. our listen innovation comments our network, continuous team energy on

against in direct-to-consumer we're to and their So And but lot that that's the are here little of retail customers competitors all continuing touching of booming. kind of channels. where wholesale channels e-com on moving grow, a cylinder is a because narrow maybe as mix our kind cooling are. in We're capturing every and are our

we're of so not we're And market. I are steps a brands I were or pre-pandemic well we're the in still think here, say but of one but two positioned, ahead. competitive probably that Many would kind

being you position market allows that, share. The real trick our in an of So all be to inventory business for okay. gain maintaining will

margin, maybe on drag they their will been we've a forever. do to for it so two month we've moved -- smaller or manage And a competitors quarter, but price feet or can't

that ground little not scrum it. we're really there's in worried any but the so about losing not all. And that seeing And happen, middle might at we're ourselves

be So good. advertising. we're pretty I It amazing think of to with product, reasons feeling feeling good people a really is lot

advertising put be bore the we'll work really with and full able back in lean stories now be front. as voice well able on to we that really out should our to tell, the amazing you're as market to of So to

a So is, of we're position percentages, as of where where the you to in are. kind think we numbers as sense It's been the from we've we it. ever is we're way really good but very about describe hard and I give would a excited market

Your second what? question was

listing. Dual

always Dual of monitoring listing. We're markets. kind

run now. to intention no have We

Prada's I'm -- kind I think of them. watching

I think in We'll time. next couple this the they've been probably of also our It's structure years. thinking at about in looking debt for radar. long be a our

maturities coming up. have We

but next rest the that right this anything the won't you pressing on nothing back of into getting kind as But think there's markets, will been we be we a for have right of so the position the year, back the surprise all half laser-focused year. with Reza that step always better evaluating so we into burning and And that. of of will coupled I year in about or We've together business now.

Thank of so best Okay, alright. you. Well, you Thank luck. much.

Yeah, thank you.

of Thank final NF a you. we And Trinity. from questions couple of Chow just have got Yvonne

So Yvonne, please?

can you Hello, me. hear

Hi there.

Hi, a X about remember have a very, months at you on I results, very good. is question gross the just I result. talked which about ordering wonderful congratulations the like margin, ahead. to on XX annual And follow-up

margin, you the should with of that good wondering the nine six -- mentioned a going XX.X%. at I'm to if into or to of could so thinking margin where little gross which that So margin the whatever come much of ordering, -- very I'm things months we then bit those get sustain How XX%, before is doesn't is is the that whether another for advance inflation because down high?

Yes. We're margins, on always looking right. forward

we're of that the as we're margins achieve. of looking So our each lines one buying very are to forward, conscious

freight back for wrote moved moved We've on if levels we're piece freight at increased freight into down costs with we profile. managing. nobody of that even our yet I levels, margins So move a believed forward, might gross paper. as margin And you the we have even would you. example the use them that have

even kind inflationary the our we're of able to margin. so and look that sort with manage and working we're And any seeing of pressures to suppliers, forward with

long-standing forward margins to in, about our it been hit The is margin. buying right this as in of manage years, we're and ability I've Reza engineering we're our and what we're one to XX product products a strengths well. said So business, thinking of bringing teams as were here the and to

-- to from So not price point managing perspective products can inflation, discussion easier from what's landing only as is it's new a there well and a with you're often forward. do and be also buying with a as in price but coming the we

margin. in get but the a mix gross starts have that sense overall back has to it, Asia well. deliver historic really as don't real benefit I margin effects underestimate as confidence to whispered of So, ability levels, of our consolidated to to our the I And

everyday it's that are teams that tell what So it's at at would I because even we've it. you, you look good think we're for an task delivered, if not us. expectations, the in my But I own over-delivering

last on margin just to so the deliver. comment Asia, in Asia And the double Kyle yet really the Japan, click countries if to about Those Korea. you historically, highest think China, made, are ones are

just gross and so business overall forward. of going that would in And the margin itself of help the profile

Thanks. Understand.

else you. Anything Thank William? William.

question you're then okay, Jefferies, finish. just If Ling from Anne and maybe last one can we

Yeah, sure.

hello. hi Hey,

guidance margin right. year, for So adjusted like Kyle, of about the this you mentioned XX% just EBITDA to XX%

the and should that half a a bit it last a but I even -- so well, assumptions way up, you which higher operating that your XX% a second highest leverage is like sales XQ, have be as it like the your is shouldn't normally still with move year, too low? for bit too -- a isn’t like at it isn’t XX.X% So XX%, even half, at for was if second take even it look at high conservative,

We that on can sure. It for be. can overachieve

to playing last in I were last year, benefits half. the temporary you numbers if our into year the think -- second our fixed compare cost

numbers half on had side second end The cost strong year the constrained, last had very number. but year, advertising last were we year of temporary we very in the and benefits the

open still some really it's are advertising being I be us but that plays so we're back to is not to temporary the in. So not business But bringing last people think but we're that it's reductions people you our on thing we're of was still to or This I continue low the push conservative last and recovering. salary very at QX benefits conservative, number had very, really able We think right, right year were year. for that as strong, in. stores

I are a did think end at that. that be is higher can better we'll I I than where the bit there it guide scenarios range where think of be.

is think control I last QX that think QX was advertising the X.X%. just certain give point it mean, a to our raised, I has year, I really year, last to Kyle you within degree.

lever know we we but going the performing, brand. want it we we're So invest directions. be a in is We're to that that have to completely saying both

And to X.X% that decision a taking X%, in to conscious quarter the we're that somewhere X.X%, so take range. for

delivered easily, It's let's drive And back and keep to basically saying, brands, would to will decided from to margin, in invest do we the the if have that right flown and EBITDA a so through we're sales. go higher thing that there. it but

But you're us. giving you're this reality my profile I've the push exactly margin right okay. changed on just business, statements, kind in it the said opening is, the of of And we've

point It's clearly And so for see had ago. was it. see stepped into you're starting into we taste move year, it get it of now. the right But you'll start as as years you'll something get And there. we're really that of you half, back to that role the guided. four the that I clearly it And next can more going see CEO we to to I it. we're getting actually the guiding to

And to be we so tend the conservative guy. to we direction will bit in continue a and move

helpful. that's think I

we EBITDA these to if side some on obviously, margin margins. to against think well. clearly that dollars and so incremental the dollars up, carry are will running set expectations, And they through, we're bring I we've Because of as of structure EBITDA ahead incremental the as in

back feels it invest we'll our with in it to higher a achieving think good I And place of end would the is ability the to the business. So describe that way -- be. be range on it's I

it. Got

Okay

just No, as the is are answer. you right we're glad got now where would conservative, it. your am feeling just far I'm who we're very sitting describe at I as trying we but way I good

on you industry I growth, business, your that do support a is point, to network. to of say, -- is to let's But your each some say, like are your the final three think reinvest store in two stage year, network years, comfortable expanding that your you're low for retail the with expand or retail that growth like your will next stores? at essential need which be to network My a that such normalized into of keen for that by you online, at understand existing not your business growth number or let's this network a you teens, the able like question

you Reza are because exact still we we're stores. are But don't give trying were we on the margin was net that number. number I a I expiring, stores Well, added that adjusting. -- we're know to think the

So add the fact so -- skewing closed so numbers the what we what's is is -- that we Russia.

of be So that. aware

top So XX of there in stores were XX We Russia, that which closed. added of five of on are are two it. Tumi Samsonite,

Well, is plus shores. closed. XX of total XX basically it's X new net So

So for XX that Russia. are closed

you for being are have mean, we they're So Russia, coming also definitely renewal. location, one location, not right to definitely does If We that up -- is happening What's stores there add not basically excluding going renewing that added. in going opened the for are I ones are are you not not that to we're up That it. mean another find store Paris another just not in them. we're Tumi. have

they're another and in are stores though yet. Samsonite new this Samsonite Even one even have open that's China, market, opening in in opening not China. are in We London for we There up. approving definitely stores up

So we're It's selective investing in it. being we're and fleet. store absolutely, about the just definitely disciplined

Reza expand a opportunities way. very So there in a are retail as in a disciplined globe. you'll said, we see fleet, because will continue but But very to the -- across

some And we've models, stores. to own from retail our moved franchise

India, tons in thing that same And And of Brazil. a opening variable markets basis. in points in the doing of like we're model so we're sales are

we're opportunity are would grow. have footprint, still to strategic year I numbers we maybe across the that stores I in XX wouldn't And stores But right best bit decisions next next markets the if more. way you'll say, even so see these add but can. be add but fleet globe, the yet, an we cost XX store have We'll I penetrate. But kind don't year. surprised laying across we our of structure a that or

still we will e-com be move higher about it kind ahead business of mid store of But growth this to different I a are of needle if our lot year, As next business a but percent -- line, industry than rates will globe. continue it think sales, it conviction talk I that And will still growth. because I be the growth, booming. think, that. have story is we presentation, everything of real the with our the story wants maybe our that do. consumer this of every growth just one a in sustainable the be incredible channel growth in single-digit will e-com won't didn't The a across is fuel our We And -- at story. mix sell buy. not upper strengths to tremendously slightly we The to that is

with move. those So we'll there any that the be one well pace as and probably channels channels leading moving of are in moving, the

not think the I to the going to getting that. is next business. read we're drive to and and part That's year continue don't expand back exciting So after that the of really year

got Okay, you. Thank it.

joining And William. last you William. comments, everybody for Any thanks us. thank Great,

Nope, I thank good think that's And thank a for for call. comments, you and you, pretty your joining. everyone,

Perfect.

Bye-bye. everybody. you, Thank

Thank you. your Thank This you the conference. for concludes participation.