Samsonite Wants to Spend Up on HandbagsBy
Luggage maker keen to add handbag brand as it focuses on women
Samsonite dominates $19 billion worldwide luggage market
Samsonite International SA, the world’s biggest luggage maker, has its eyes on adding a handbag brand and is open to a deal that could rival its $1.8 billion purchase of Tumi, according to Chairman Timothy Charles Parker.
Handbags would help Samsonite fill a gap as the company focuses on boosting sales of office gear and non-travel products to women, Parker said in an interview last week. Products designed for women currently account for less than 5 percent of the company’s sales, and it aims to eventually boost that ratio to a quarter.
“Strategically, we are quite interested in handbags. We want to find a brand that fits with the rest of our portfolio of products,” said Parker, who’s served as chairman since 2008. “The one product we don’t have a big presence in is handbags.”
Samsonite, which posted record net sales last year, is the dominant player in the $19 billion global market for luggage. The company, which is listed in Hong Kong and based in Mansfield, Massachusetts, is seeking to expand sales outside North America and increase its range of products. Executives said they are optimistic about growth, with global travel and consumer sentiment on the upswing.
Samsonite shares have jumped 21 percent in the past year. The stock increased as much as 2.7 percent in Hong Kong Monday before giving up gains.
Parker said Samsonite isn’t actively approaching potential buyers, and the company will likely spend the next year or two consolidating after its $1.8 billion acquisition of luxury bag maker Tumi Holdings Inc. in 2016 and the $105 million purchase of online retailer eBags Inc. last year. The non-travel products market could be a potential space for deals in the future, he said in a separate interview with Bloomberg TV on Thursday.
Samsonite would be prepared to pay a premium, and is interested in a handbag brand that has an international footprint, Parker said.
“Most handbag brands are owned by luxury brands and few are open to selling,” he said. “We are not afraid of paying a good price for a good business. We certainly have the firepower to do it. A good fit is key.”