Strong growth in Asia and Europe boost SMCP's sales

SMCP, parent company of Sandro, Maje, Claudie Pierlot and Fursac reported sales at 610 million euros in the first half period, a progression of 8 percent on an organic basis and 9 percent at constant exchange rates.

The performance was driven by both like-for-like sales increase of 5 percent and from network expansion.

The company opened 23 new stores in the second quarter to reach 1,658 points of sale.

The company said adjusted EBIT declined to 36 million euros, 6 percent of sales impacted by inflation and old seasons liquidation plan; while net profit dropped to 14 million euros versus 21 million euros in the first half of 2022.

Commenting on the results, Isabelle Guichot, CEO of SMCP, stated: “The group recorded a good performance over the first half, driven by strong momentum in Asia and Europe. After two years of very strong growth, America posted a slight decline. By brand, SMCP benefitted from the double-digit growth of Sandro and the “Other brands” division (Claudie Pierlot and Fursac).”

“For the second half of the year, we have a clear action plan focused on pursuing our full-price strategy, excellent cost control and prioritising our investments, while continuing to expand our network and improve the productivity of our teams. We are therefore confident in our ability to achieve our objectives for the full year 2023,” added Guichot.

SMCP’s financial performance across core geographies

In France, SMCP’s sales reached 204 million euros, up 5 percent on an organic basis, while the second quarter was impacted by a challenging economic and social environment. The company added that strikes, social tensions and persistent inflation discouraged consumption and tourist flows. In addition, the second quarter suffered from unfavourable calendar effects.

The semester’s performance was driven by Sandro and by “Other brands” as well as digital sales. The network is growing with seven net openings in the second quarter. In EMEA, sales reached 189 million euros, an organic increase of 9 percent. The performance was driven by the largest markets such as Germany, Spain, Italy, and the Middle East, except the UK, impacted by a challenging economic environment. The company regained growth momentum in the second quarter with fifteen net openings notably in Spain, Germany and Turkey.

In America sales reached 80 million euros, an organic decrease of 4 percent compared to H1 2022 due to Canada’s slow post-Covid recovery, accentuated by the retail market’s recomposition and by the lack of tourism from China. SHowever, the network regained growth momentum in the second quarter with four net openings.

In APAC, sales reached 137 million euros, 19 percent organic growth versus H1 2022 and 43 percent growth in the second quarter. Mainland China increased sales by 53 percent during the quarter, resulting in a double-digit growth in H1. Excluding Mainland China, the region also recorded good performance in Hong Kong, Macau, Singapore and Malaysia, with good touristic flows. The network decreased by three POS in the second quarter but up two POS overall in the first six month period.