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SMCP to take sales and profit hit in China due to coronavirus outbreak

By Prachi Singh

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Business

SMCP, parent company of Sadro, Maje, Claudie Pierlot has announced that the outbreak of Covid-19 in China is having a material negative effect on Chinese consumption and in this context, the company’s sales and profitability are significantly impacted in the country, a key market for the group and to a lesser extent in the other regions, due to a decrease in Chinese tourists.

The company said in a statement that while SMCP had been generating a strong performance during the first three weeks of January in mainland China, a meaningful part of the group’s stores has been temporarily closed in mainland China and in Macau since then. In parallel, the remaining stores are operating with limited opening hours.

Commenting on the development, Daniel Lalonde, CEO of SMCP, stated: “While we cannot predict the duration of the crisis, we have been taking appropriate measures to mitigate the impact on our business. Beyond this, I remain fully confident in our strategy, the strength of our brands and their potential in China.”

In this context, SMCP has decided to postpone its capital market day, initially scheduled for April 2, 2020 to September 30, 2020.

Picture:Facebook/Claudie Pierlot

Claudie Pierlot
Maje
Sandro
SMCP