Premium fashion group SMCP saw its profits more than double in its most recent full-year results following a strong fourth quarter as deep-pocketed shoppers remained resilient despite rising inflation.
The French group, which owns brands Sandro, Maje, Claudie Pierlot, and Fursac, reported sales of 332 million euros in the fourth quarter, up 5.9 percent on a reported basis from the prior year.
The strongest Q4 growth was in the EMEA market, where sales were up 16.8 percent to 105 million euros, followed by the Americas where sales increased 14.3 percent to 52 million euros.
In the group’s home and biggest market of France, sales increased 8.1 percent to 120 million euros.
On a less bright note, sales in the APAC region dropped 18.1 percent to 55 million euros as the business continued to be “significantly impacted” by Covid-related restrictions in Mainland China.
Full-year profit more than doubles
Sales for the full year increased 13 percent on an organic basis to 1.2 billion euros, which was driven by a 14 percent increase in like-for-like sales.
The group managed to more than double its full-year net profit to 51 million euros from 23.6 million euros a year earlier.
Chief executive Isabelle Guichot told investors: “The group registered another very good performance this year, with sales growth in all regions except for Continental China due to Covid-related constraints.
“The work we have been doing for several years on the desirability of our brands has enabled us to adjust our sales prices in line with inflation, while continuing to deploy our full price strategy.”
Guichot also noted that the group has continued to open stores in China “in anticipation of the business recovery”.
The results come just a day after management consulting firm AlixPartners UK announced the sale of its 37 percent stake in SMCP.
No details about any potential buyer or buyers have yet been communicated, and the sale may or may not trigger a public offering.