Strong First Half Performance Compared to Pre-Pandemic Levels
First half net sales were up 24.4% compared to the pre-pandemic first half of 2019, showcasing resilience despite current challenges.
Direct-to-Consumer Channel Growth
The direct-to-consumer (DTC) channel showed resilience, declining only 1.6%, with DTC sales mix increasing to 40% from 38% last year.
Cost Management and Operational Efficiency
Despite adding 57 net new stores, distribution and G&A expenses increased by less than 1%. Adjusted EBIT margin remained 400 basis points above the first half of 2019.
Non-Travel Category Growth
Non-travel category sales grew 180 basis points to 36.2% of total sales in the first half, representing long-term growth opportunities.
Stable Gross Margin
Gross margin remained robust at 59.2% in the first half, slightly down from 60% the previous year, but still significantly above pre-pandemic levels of 2019.
Successful Product Innovation
Introduction of new products such as the 19 Degree Lite for TUMI and the upcoming PARALUX collection, highlighting ongoing investment in product innovation.
Resilient EBITDA Margin
First half adjusted EBITDA margin was 16.2%, with improving trends noticed in Q2 versus Q1.