SMCP H2 Sales Climb With Boost From China
Growth accelerated in the second quarter, with a boost from China and improved business in France.
PARIS — SMCP, the group behind contemporary French fashion labels Sandro, Maje and Claudie Pierlot, posted a 10.1 percent rise in second-quarter sales, boosted by growth in China and a return to growth in France.
“We are pleased,” SMCP chief executive officer Daniel Lalonde said in a statement on Thursday, noting the second-quarter performance was an acceleration from the previous quarter.
Sales over the three-month period ending June 30 totaled 265.7 million euros, up 8.0 percent at constant exchange rates.
In France, the rate returned to positive territory, up 0.5 percent, as the company adjusted its store network, reducing the number of its boutiques by six, while investing in more prime locations.
Asia led growth with a 23.4 percent increase at constant currencies, with mainland China posting growth of more than 30 percent, while protests in
Hong Kong disrupted business.
Sales in the Americas, where the company is expanding on the coasts with stores in Miami and Vancouver, increased 13.3 percent.
The group confirmed full-year guidance of sales growth between 9 percent and 11 percent at constant currencies and a stable EBITDA margin.
The French company, which is controlled by Chinese textile conglomerate Shandong Ruyi Group and was listed on the Paris stock market in 2017, last month announced plans to buy men’s wear label De Fursac. Pushing further into the digital realm, it recently forged a partnership with Farfetch for the distribution of its Sandro label, adding another platform to its digital offer.