- Prachi Singh |
SMCP owner of brands Sandro, Maje and Claudie Pierlot, reported sales of 218 million euros (258 million dollars), up 17.7 percent compared with the same period of the previous year. This increase, the company said, was amplified by calendar effects: in France, due to one week shift in the summer sales period from June to July, in Europe, month of September benefitting from positive market conditions and a favourable base effect. SMCP said, at constant exchange rates, sales increased by 20 percent showing a more significant exchange rate impact than in the first half of the year.
Commenting on the results, Daniel Lalonde, SMCP’s Chief Executive Officer, stated in a press release: “The group’s strong third-quarter performance confirms the growth prospects of Sandro, Maje and Claudie Pierlot. We continue to implement our strategy based on pursuing organic growth, gaining market share in France and expanding internationally. On this first publication as a listed company, we confirm the 2017 financial objectives presented at the time of our initial public offering.”
SMCP expands international presence
During the period the group continued international expansion with 28 net openings and the opening of a store in Taiwan as a new market. Sandro opened free-standing stores on Regent Street, London, in Shenzhen, Munich and Frankfurt, Maje opened free-standing stores in Cologne, Luxembourg and at the Elements mall in Hong Kong and Claudie Pierlot opened stores in Luxembourg and Cologne, while strengthening its presence in Italy at the department store La Rinascente in Rome and Milan.
In Greater China, SMCP opened store in two new cities, Kunming and Harbin, bringing its presence to 20 cities. It also opened the Sandro and Maje e-shops in Mainland China. In France, the group continued optimizing the quality of its network including the refurbishment of key points of sale. The company added that it also rolled out of the omnichannel store-to-web service for Maje in France as well as the pre-launch of eyewear collections for Sandro and Maje.
SMCP’s posts sales growth for the nine month period
Nine-month period growth, the company added was driven by all regions and all brands. Over the first nine months, revenue growth reached 16.8 percent or 17.8 percent at constant currency. In France, SMCP continued gaining market share with sales increasing by 4 percent. In EMEA, the group posts sales rise of 27 percent across all strategic markets and the continued network expansion with 42 net openings over the last twelve months, mostly in Italy and Germany.
In Americas, SMCP said, growth amounted to 18 percent in a challenging market. The group registered a strong performance across all channels with 12 net openings over the last twelve months. The group also performed strongly in Canada where it opened its first free-standing stores at the end of 2016. The APAC region also reported strong sales growth of 39 percent. The number of net openings in the region amounted to 48 over the last twelve months.
The growth over the last nine months, the company said was also driven by all our three brands. Sandro recorded a very strong growth of 23 percent, driven by the opening of first-class stores in Europe and the success of the women's and men's collections. Maje recorded solid sales growth of 8 percent, with growth momentum in Greater China and continued commercial success of the ‘M’ bag range. Claudie Pierlot also recorded 20 percent growth during the period.
SMCP confirms full year revenue guidance
Following an exceptional September, SMCP added that it saw a less dynamic market in Europe in October. The company said, sales of November show a good level of growth. For the fourth quarter, the group anticipates a currency impact similar to that of the third quarter. Given its expected performance for the second half of the year, SMCP confirms its full year financial guidance including a sales target of circa 900 million euros (1,066 million dollars) at December 31, 2017.