Covid-19 impact dents SMCP's Q2 sales, posts 45.8 percent drop

In the second quarter of 2020, consolidated sales at SMCP, parent company of Sadro, Maje, Claudie Pierlot, reached 144.1 million euros (169.2 million dollars), down 47 percent on an organic basis. The company said in a statement that reported sales were down 45.8 percent, including a neutral currency impact and De Fursac’s contribution of positive 1.2 percent, while e-commerce revenues increased by 32 percent. The company added that over the first six months, consolidated sales stood at 372.8 million euros (437.9 million dollars), down 33.5 percent on an organic basis, including a like-for-like sales performance of negative 37.6 percent. Overall, reported sales decreased by 31 percent, including a positive currency impact of 0.3 percent and a positive contribution of 2.2 percent from De Fursac.

Commenting on the report, Daniel Lalonde, SMCP’s CEO, stated: “As anticipated, the Covid-19 pandemic strongly impacted our sales over the quarter, as shutdown measures were implemented in many countries, and as tourism has been absent for several months. Nevertheless, since the beginning of May we have seen a progressive improvement in our sales as our stores gradually reopened. Our performance in mainland China showed good resilience and returned to growth in June. Digital has been part of the group’s key drivers for years and has once again demonstrated its ability to support our sales despite lockdown measures in all of our regions.”

SMCP’s performance across core geographies

Over the last twelve months, SMCP net openings amounted to 57 directly operated stores (DOS). This includes 26 net openings in APAC, 27 in EMEA and 18 in Americas. Meanwhile, the group has pursued the optimization of its network in France with closure of 14 DOS including two relocations Strasbourg and La Vallée Village and one closure (Poitiers) in Q2 2020. SMCP opened eight DOS in Q2 2020.

In France and EMEA, the company’s sales were down 49.6 percent and 55.1 percent respectively on an organic basis, showing a gradual sales improvement throughout the quarter as stores gradually reopened. In Europe, SMCP said, sales trends were relatively contrasted due to various degrees of local shutdowns and levers of exposure to tourism, which remained absent throughout the quarter. Among top performers were Germany, the Netherlands and Switzerland, while Italy, the UK and Spain were the most challenged. In France, performance was relatively resilient compared to Europe, despite some negative calendar effects related to the summer sales, which were postponed by three weeks to July 15. The group’s digital sales in Europe rose 39.7 percent.

In the Americas, sales were down 69.8 percent on an organic basis, showing a greater impact from the crisis as most stores remained closed until the end of June, notably in New York, a key area for the group. In parallel, the company added, e-commerce displayed a strong performance, up 21.4 percent.

In APAC, sales were down 19.1 percent on an organic basis, reflecting resilience in mainland China, down 3.4 percent on an organic basis in Q2 2020 and some contrasted trends in the rest of Asia. The company further said that mainland China benefitted from e-commerce growth of 17.2 percent, driven by successful operations on T-Mall. In the rest of Asia, SMCP recorded contrasted trends including a good resilience in South Korea and Taiwan and tougher markets in Hong-Kong and Singapore.

On an organic basis, Sandro sales were down 45 percent, Maje 49 percent and the Other Brands division, down 49.1 percent, impacted by the Covid-19 epidemic.

Picture:Maje website