SMCP, the prestigious fashion group behind renowned brands such as Sandro, Maje, and Claudie Pierlot, is thrilled to announce a strong start to the year in terms of sales performance. Despite the prevailing challenges in the retail sector, the company achieved remarkable success in the first half of 2019. Total sales for the period soared to €540.3 million, marking a substantial growth of 9.5%. Impressively, even when adjusting for currency fluctuations, the sales demonstrated an admirable 8% increase.
A significant driving force behind this growth was the robust international sales, particularly in mainland China, where the brands experienced an exceptional 30% surge. On the other hand, the domestic market in France presented some difficulties, with a marginal decline of 0.7% in like-for-like sales.
In addition to the positive sales figures, SMCP made notable progress in other areas such as expanding its accessories line and advancing in the digital realm. The share of digital sales in total revenue rose to 14.8%, reflecting a 50bps increase. The company’s adjusted EBITDA for the period reached €86.8 million, a growth of 3.5%, with a strong margin of 16.1%. However, the net profit was impacted by one-off refinancing costs and investments, leading to a decrease to €27.8 million when excluding these expenses.
Under the ownership of Topsoho, a firm controlled by China’s Shandong Ruyi, SMCP continues to assert its status as a key player in the fashion industry. CEO Daniel Lalonde highlighted the resilience of the company’s business model and the success of its full-price focus strategy in navigating market challenges and achieving favorable outcomes.
Noteworthy among the company’s strategic moves was the acquisition of De Fursac during the first half of the year, aimed at bolstering its footprint in the menswear segment. With the acquisition approved by France’s competition authority, this move aligns seamlessly with SMCP’s growth objectives.
Looking ahead, SMCP remains positive about its future growth trajectory, reiterating its full-year guidance with a projected sales growth of 9% to 11% on a currency-neutral basis. The EBITDA margin is anticipated to be consistent with 2018, underscoring the company’s confidence in its ability to sustain success in the competitive global fashion landscape.
For more information on SMCP’s success in the fashion industry, visit SMCP and to browse the latest collections from Sandro, Maje, and Claudie Pierlot, click on Sandro, Maje, and Claudie Pierlot.
