- Prachi Singh |
SMCP, the parent company behind French fashion labels Sandro, Maje and Claudie Pierlot posted net income of 20 million euros (22 million dollars) in the first half of 2019 against 27.4 million euros in H1 2018. Excluding one-off costs related to the refinancing, the company said, net income group share was almost stable at 27.8 million euros. Consolidated sales reached 540.3 million euros (596.3 million dollars), up 8 percent at constant currency. Overall, reported sales were up 9.5 percent, including a positive currency impact of 1.5pts.
Commenting on the first half report, Daniel Lalonde, SMCP’s Chief Executive Officer, said in a statement: “Despite challenging market conditions, SMCP’s business model once again demonstrated its resilience while our full price focus strategy bore fruits, enabling the group to deliver a sustain high gross margin. Over the first half we also initiated the process of acquiring De Fursac, a French leader in men’s accessible luxury, which is soon to be completed.”
International markets drive SMCP’s H1 sales growth
The company added that the sale growth was driven by international sales increase of 14 percent with mainland China posting over 30 percent rise at constant currency. This performance includes a like-for-like sales growth of negative 0.7 percent reflecting tough market conditions in France and a positive international LFL growth. Over the semester, SMCP benefited from the successful development of its accessories business, up 23.1 percent as well as progress in digital, up 50bps to 14.8 percent of total sales. Adjusted EBITDA increased by 3.5 percent to 86.8 million euros (95.8 million dollars), while adjusted EBITDA margin stood at 16.1 percent.
SMCP has confirmed its 2019 full-year guidance and expects sales growth between 9 percent and 11 percent at constant currency and a stable adjusted EBITDA margin compared to 2018.