Core Viewpoint - The company is experiencing pressure on its performance due to macroeconomic uncertainties, with a projected revenue decline in Q2 and stable profit margins. However, there are positive signs in specific regions like India and strong growth for TUMI in Europe and China [1][2]. Financial Performance - In Q1 2025, the company's revenue decreased by 7.3% year-on-year to $800 million, with a currency-neutral decline of 4.5%. The gross margin fell by 1 percentage point to 59.4%, and the adjusted EBITDA margin decreased by 2.8 percentage points to 16%. Net profit dropped by 42.6% to $50 million, with a net profit margin of 6.1% [2]. - The company expects Q2 revenue to decline in the mid-single digits year-on-year, with profit levels remaining similar to Q1. The second half of the year is anticipated to have a lower base compared to the first half, but uncertainties remain high [2]. Regional Performance - Revenue changes by region in Q1 2025 were as follows: Asia -7%, North America -8%, Europe +4.4%, and Latin America 0%. North American revenue was impacted by early shipments, with a true decline of 5.2% when excluding this effect. China saw a 5% decline due to a high base, while India experienced a turnaround with a 2.6% increase [2]. - TUMI showed strong growth in Europe and China, with TUMI's revenue in China increasing by 10.9% due to new store openings. The company plans to open flagship stores in major cities [3]. Strategic Outlook - The company maintains a strong position as the world's largest luggage brand, with potential for long-term growth in the Asia-Pacific region. The dual listing overseas is expected to aid in valuation recovery. Profit forecasts for 2025 and 2026 are $254 million and $289 million, respectively, with a PE valuation of 15X for 2025, translating to a target price of HKD 20.29 per share [1].
新秀丽(1910.HK)：25Q1业绩承压 欧洲保持稳健 印度转正