SMCP, the premium fashion retailer behind Sandro, Maje, Claudie Pierlot, and Fursac, has reported a robust performance in the face of a challenging economic backdrop during Q3. The company’s Q3 figures align with adjusted guidance, indicating a 1% decline in sales to €295 million at constant exchange rates and a 2% drop on an organic basis. These results are notably set against strong comparisons from the previous year and the ongoing economic challenges.
For the first nine months of 2023, SMCP has achieved a 5% growth at constant exchange rates and a 4% organic increase, with total sales amounting to €905 million.
In line with broader industry trends, SMCP witnessed a slowdown in consumption across Europe and America during the latest quarter. China’s economy displayed a slow and weak recovery, while other Asian markets showed more positive trends.
Despite these challenges, SMCP maintained its focus on full-price offerings and stabilized discount rates, even in a competitive environment following two years of improvement. The company also continued its store expansion, adding 46 net openings during Q3, bringing the total points of sale to 1,704.
Brand Performances
Breaking down the brand performance during Q3, Sandro reported a 4.6% decrease in sales on a reported basis and a 2.2% organic decline to €143.3 million. However, the year-to-date figures saw a 5.2% increase on a reported basis and a 6% organic rise.
Maje, on the other hand, reported a 6.3% increase in Q3 sales on a reported basis and a 3.2% organic growth to €112.4 million, outperforming the nine-month figures, which showed a 0.9% reported dip and a 0.2% organic rise.
Claudie Pierlot and Fursac reported a 2.3% increase in Q3 sales and a 2.4% organic growth to €39.2 million. However, these results were lower than the nine-month figures, which witnessed a 10.6% reported and a 10.7% organic increase.
Regional Highlights
Regionally, France saw a 3% organic increase in nine-month sales, reaching €301 million, but Q3 experienced a 2% decline due to lower traffic attributed to persistent inflation. Nevertheless, the group outperformed market indicators, with digital showing positive like-for-like growth.
In EMEA, nine-month sales reached €286 million, up 5% organically, but Q3 sales dropped by 2% due to inflation, a consumption slowdown in the UK and Italy, and a decrease in tourist flows. However, the Middle East remained a positive trend, with 20 new points of sale in Q3, including a new market entry in Egypt.
In the Americas, after a strong performance in 2022, nine-month organic sales fell by 5% to €123 million, with a 7% decline in Q3. The US market showed more resilience, particularly in key cities like Miami and Houston.
In APAC, nine-month sales surged by 13% organically to €195 million, but Q3 sales saw only a 1% increase. Sales in Greater China showed a slight uptick in Q3, with Singapore and Malaysia performing even better. The company continued its expansion with 17 new openings, primarily in South Korea, China, and Vietnam.
CEO’s Perspective
SMCP’s CEO, Isabelle Guichot, emphasized the company’s cautious approach in response to the challenging economic environment. She stated, «In this context, for several months, we have been implementing an action plan based on pursuing our full-price strategy, prioritizing investments, enhancing our physical and digital networks’ quality, and improving team productivity. This plan is beginning to yield results, and we anticipate a growing impact in the fourth quarter.»
