Sequential Improvement in Sales
All regions and brands showed sequential improvement in Q3 versus Q2. Net sales growth was positive in August, September, and October across all regions and brands.
Direct-to-Consumer Growth
Direct-to-consumer sales were up 3.5% period-over-period, with e-commerce up over 10% and company-owned stores up 1.1%.
Gross Margin Expansion
Gross margins expanded to 59.6%, up 30 basis points year-over-year and 60 basis points from the prior quarter.
TUMI Brand Performance
TUMI's sales shifted from being down 2-3% in H1 to positive 5% in Q3, with significant growth in Asia (up 7.1%) and Europe (up 6.3%).
American Tourister Recovery
American Tourister showed a turnaround with a shift to 3% growth, driven by strong performance in India.
Strong Cash Flow and Debt Management
The company reported strong free cash flow generation of $64.7 million and successfully refinanced its corporate debt, extending maturities and maintaining interest expenses.