Premium fashion retailer SMCP has announced impressive sales figures, surpassing €1 billion for the latest financial year and demonstrating a strong recovery. Despite challenges posed by the pandemic and ownership changes, SMCP saw a remarkable 22.1% increase in sales in Q4 2021 compared to the same period in the previous year. Overall, sales for the year rose by 18.7% to reach €1.038 billion.
SMCP attributed this sales momentum primarily to the Asia-Pacific region, particularly mainland China, which experienced a significant 15.2% rise compared to 2019. In the Americas, the company successfully returned to pre-pandemic levels, achieving a 5.5% increase over a two-year period, driven by its strong performance in the US market. SMCP also highlighted the success of its e-commerce segment, which accounted for 23% of its total sales.
The implementation of a full-price strategy played a crucial role in boosting SMCP’s profits, with adjusted EBIT growing to €95.3 million, a significant improvement from the €7 million reported in 2020. Furthermore, net income improved significantly, with the company earning €23.6 million after experiencing a loss of over €102 million the previous year.
Despite geopolitical uncertainties, SMCP maintains an optimistic outlook for the upcoming year and expects double-digit sales growth compared to 2021. Additionally, the company anticipates mid-single-digit sales growth compared to 2019. SMCP’s adjusted EBIT is projected to at least match the level achieved in 2021.
Sales in France gradually caught up to 2019 levels and even exceeded them in Q4 2021, exhibiting promising performance in the region. In EMEA, group sales increased by 19.6% compared to 2020, with physical stores driving this growth. APAC saw a rise of 14.5% in sales, and China displayed resilience despite local Covid resurgences and weather events. Sales in the Americas experienced a remarkable increase of 57.2% compared to 2020, nearly reaching pre-pandemic levels.
SMCP’s individual brands also had a successful year. Sandro witnessed sales of €497.6 million, representing a 19.8% increase, while Maje’s sales rose by 20.7% to €407.3 million. The company’s other brands, Claudie Pierlot and Fursac, also experienced sales increases of 9.4% and 27.7% respectively.
CEO Isabelle Guichot expressed confidence in the company’s ability to achieve its objectives by 2025, despite market uncertainties. SMCP’s improved profitability and record level of free cash flow have positioned it well to execute its strategic roadmap.
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