SMCP Q2 sales increase, confirms full year outlook

In the second quarter of 2019, SMCP, the parent company of Sandro, Maje and Claudie Pierlot said consolidated sales reached 265.7 million euros (295.7 million dollars), up 8.9 percent at constant currency, while the company said, reported sales stood at 10.1 percent, including a positive currency impact of 1.2pts. For the full year, the group is targeting a sales growth of between 9 percent and 11 percent at constant currency and a stable adjusted EBITDA margin compared to 2018, excluding the acquisition of De Fursac.

Commenting on the results, Daniel Lalonde, SMCP’s Chief Executive Officer, stated in a statement: “We are pleased with our Q2 sales which, as expected, showed a solid acceleration to 10.1 percent. In the first semester, our brands continued to launch beautiful collections, prominent stores and continued to focus on full price sales. We also delivered on our key priorities for 2019 such as driving retail excellence and accelerating our digital journey through partnerships with JD.com and Farfetch, which perfectly complement the Group’s growing digital presence. This leads us to confirm our full-year guidance.”

SMCP’s performance across core geographies

In France, the company said, sales were back to growth at 0.5 percent with Sandro and Maje contributing positively despite tough market conditions. SMCP pursued its network optimization with six net closings over the last twelve months such as Sandro Levallois-Perret, while investing in new locations including Claudie Pierlot, Saint Germain-des-Prés and St Tropez.

The company added that in EMEA, SMCP delivered 7.5 percent growth at constant currency, reflecting contrasting trends in Europe, including tough market conditions in the UK, which is impacted by Brexit uncertainties, and in Switzerland which has seen a slowdown in tourism, while Spain, Italy and Germany’s performance continued to be very dynamic.

In the Americas, the group generated 13.3 percent sales growth at constant currency considering the high basis of comparison of 27.1 percent growth in Q2 18 and the challenging market conditions, still impacted by a slowdown in tourism. The company further said that SMCP benefited from the positive results of its recent openings such as Brickell City Center (Miami) and the Pacific Center (Vancouver). In Mexico, SMCP opened three new POS in Polanco and Monterrey Punto Valle, totaling 13 points of sale.

In APAC, the Group recorded sales growth of 23.4 percent at constant currency with over 30 percent rise in Mainland China, while the performance, in Hong-Kong was impacted by some protests in June. In APAC, SMCP also showed very strong progress in digital, including promising results on JD.com.

SMCP brands perform well in Q2

Sandro registered 8.6 percent sales growth at constant currency. Over the last twelve months, Sandro opened 61 directly operated stores in locations such as Monaco, MixC in a new city Nanning (Mainland China) and a flagship store at the IFC Mall (Hong Kong). More recently, Sandro announced its digital expansion through a partnership with Farfetch.

Maje recorded a sales growth of 10.7 percent at constant currency. Over the last twelve months, the brand opened 53 directly operated stores including in Stockholm and MixC in Nanning. SMCP said, Claudie Pierlot recorded 4.5 percent sales growth at constant currency, impacted by a lack of light summer pieces in its spring-summer collection and a lower exposure to fast-growing international markets. Over the last twelve months, the brand pursued its development with the opening of 23 directly operated stores, including 14 DOS internationally, such as in Florence (Italy) and Tianjing (Mainland China).

In H1 2019, consolidated sales stood at 540.3 million euros (601.3 million dollars), up 8 percent at constant currency, including a like-for-like sales growth of negative 0.7 percent, which SMCP added, mainly reflects tough market conditions in France and a positive international LFL growth. Reported sales in the first half were up 9.5 percent, including a positive currency impact of 1.5pts.

Picture:Facebook/Sandro Paris