SMCP Sees Strong Q1 Organic Sales Boost

● The accessible luxury player's 23.7 percent organic sales gain was driven by momentum in the Americas and EMEA.

PARIS — Strong demand in the Americas and Europe, the Middle East and Africa drove SMCP's sales up 23.7 percent on an organic basis in the first quarter ended March 31.

In reported terms, the accessible luxury player, owner of the Maje and Sandro labels, saw its sales jump

26.4 percent to 283 million euros year- over-year.

“We are particularly pleased with our performance in the Americas and EMEA regions, which demonstrates the relevance of our strategy and the proven success of our brands internationally,” stated SMCP chief executive officer Isabelle Guichot.

Sales gains were strong in all but the Asia Pacific region, which was hampered by the recent wave of COVID19 restrictions in China and Hong Kong. Revenues in the region dropped 7.2 percent in reported terms to 67.6 million euros. Sales were down by a 13.9 percent on an organic basis, despite a good start to the quarter for Chinese New Year.

“The desirability of our brands remains strong in Asia, and especially in China,” the company stated.

In France, the company saw its revenues increase 19.1 percent, or 22.7 percent on an organic basis, to 93.7 million euros. SMCP's sales at home accelerated, it said, and it outperformed the market overall. It completed its domestic store optimization plan during the quarter, finalizing the closure of its Suite 341 multibrand format and closing 13 points of sale in total, mainly in smaller cities.

In the rest of the EMEA region, revenues increased 74.9 percent in reported terms, to 83.1 million euros, and were up 72.9 percent on an organic basis, exceeding 2019 levels for the first time since the beginning of the pandemic.

Sales in the Americas grew 55 percent to 38.6 million euros, representing a 44.5 percent gain in organic terms.

Overall, business was boosted by the company's increasing focus on a fullprice strategy — its discount rate overall was down by 6.1 percentage points compared with the first quarter of 2021.

Digital sales represented 25 percent of business in the quarter, compared with 15 percent in 2019.

SMCP confirmed its financial targets for the year — anticipating “solid doubledigit sales growth” year- over-year and a stable profit margin — on condition that the health situation in Asia Pacific improves “relatively quickly,” it said.