Investing.com-- Samsonite International SA (HK:1910) said on Thursday that it was proceeding with a dual listing in the U.S., even as the Hong Kong-listed luggage maker clocked a decline in its 2024 sales and earnings.
The company said in its 2024 earnings report that it “continues to make progress on preparing for a potential dual listing of its securities in the United States,” adding that its board and management believed a dual listing would “enhance value creation over time for shareholders by increasing trading volumes and by making its securities more accessible to investors in the U.S. and globally.”
Plans for Samsonite’s dual listing plans were first flagged in early-2024, as the Luxembourg-based luggage maker attempted to gain some buffer from China, amid worsening trade and political ties between Beijing and Washington. These ties are also expected to worsen under a Donald Trump administration, with Trump having recently imposed a 20% trade tariff on China.
Samsonite had listed in Hong Kong in the early-2010s, as it sought more proximity to its biggest market, China. The country still remains Samsonite’s biggest revenue source.
But sluggish economic growth and weak consumer spending saw Samsonite’s 2024 revenue fall 2.5% to $3.49 billion, while profit attributable slid nearly 13% to $345.6 million.
But recent stimulus measures from Beijing- especially those aimed at shoring up consumer spending- are expected to benefit the company, as is a recovery in Chinese travel demand.
Samsonite’s Hong Kong shares rose 2.6% after its earnings.