SMCP ‘cautiously optimistic’ as sales continue to improve

French fashion group SMCP has reported soaring revenue in the second quarter of the year as it narrows in on 2019 sales levels.

The group, whose portfolio includes brands Sandro, Maje, Claudie Pierlot and De Fursac, reported sales of 229.4 million euros in Q2, an increase of 59.1 percent on a reported basis and 61.1 percent on an organic basis compared to a year earlier.

The French giant is now 14 percent behind Q2 2019 levels, compared to the 17 percent it was behind in Q1.

The company cited strong double-digit growth of 22 percent in Mainland China compared to 2019 levels, while its US market was going “from strength to strength”, with sales 11.3 percent ahead of 2019 levels.

SMCP ‘cautiously optimistic’ about H2

The group also said the reopening of stores in its home market of France has been “very successful”, while EMEA performance was “strong” despite store closures and a continued drop in tourism.

SMCP said it made “solid progress on full-price strategy”, with a “meaningful reduction in promotional sales’ share”.

Commenting on the results in a statement, group CEO Daniel Lalonde said: “In the second quarter, we delivered a strong performance in all regions. In APAC and in the US, our sales exceeded pre-pandemic level, while in France and EMEA, we recorded solid growth despite the closure of the entire network during half of the quarter, a less promotional environment, and very low tourism.

“We also pursued the execution of our One Journey strategic plan, through new strong, creative, and disruptive brand initiatives engaging millennials; a successful implementation of ship-from-store across Europe thanks to our unique retail pure player business model; tailored openings in Europe and Americas; and a continued phygital expansion in APAC.”

Looking forward, Lalonde said the company “remains cautiously optimistic about H2 2021 in all our markets”.