Samsonite hikes Asia prices
Samsonite, the world's largest branded-luggage maker, said it will raise prices in Japan and India again this year as weakening local currencies cut the dollar value of sales from the countries.
The luggage maker will raise prices in Japan by 10pc next month and soon increase prices in India by 7pc, Asia Pacific and Middle East president Ramesh Tainwala said at an earnings press conference in Hong Kong yesterday.
The price revisions at the Massachusetts-based company follow an 8pc increase in India earlier this year and a previous 10pc raise in Japan. The Indian rupee plunged to a record low yesterday amid concerns about capital outflows and an unprecedented bond-buying programme by the Bank of Japan drove the yen to the weakest level in more than four years in May.
This year "has been a much calmer year on the currency front, and this has caused fewer distortions to our sales and profits," chief executive Tim Parker said in a filing to the stock exchange. "There remain a few exceptions, in particular the Japanese yen and the Indian rupee, both of which have declined considerably."
Japan made up about 4pc of group sales and India accounted for 6pc, according to William Yue, investor relations director.
Samsonite shares fell 6.6pc in Hong Kong. The city's benchmark Hang Seng Index dropped 1.6pc. Adjusted net income rose 5.4pc to $92.9m in the six months ended June 30. Sales rose 16pc to $983.6m. (Bloomberg)