- Prachi Singh |
French retail group SMCP has reported a 32 percent jump in first-half revenues. The chain, which sells fashion labels Sandro, Maje, and Claudie Pierlot marked its fifth consecutive growth year driven by like-for-like growth in all key regions including Europe, North America and Asia, including China.
Like-for-like sales at constant exchange rates increased 8.9 percent to 316 million euros (354.5 million dollars) for the first half.
Rapid retail expansion on cards
SMCP Group opened 64 new stores in the six-month period, 70 percent of them outside of France and 12 percent in Asia, bringing its international business to 48 percent of the total against 38 percent last year. The company further plans to ramp up its retail expansion during the rest of the year with store openings at Plaza 66 and IFC in Shanghai, the MixC shopping mall in Shenzhen, Hangzhou Tower and three in Dubai Mall.
The company has around 125 locations in the US, including partnerships with Bloomingdale’s and Saks Fifth Avenue, with business concentrated in larger hubs such as New York, Los Angeles and Miami. SMCP, 70 percent-owned by KKR & Co. ventured into five new markets in the first half of this fiscal such as Mexico, Macau, Sweden, Kuwait and Kazakhstan and aims to launch new stores in London, Milan and Paris in the second half. As of June 30, SMCP operated 1,039 points of sale in 34 countries.
Growth amid slow Paris economy
Despite difficult economic conditions in France, the Group reported revenue increase of 10.1 percent in reported terms, and 5.9 percent on a like-for-like basis. International sales rose 64.9 percent and 14.9 percent on a like-for-like basis.
Online sales doubled in the first half, owing to enhanced customer experience, partnerships with online retailers and the launch of omni-channel services.
New CEO and CFO join SMCP
Effective September 1, Philippe Gautier joins as group Chief Financial Officer, and Paul Griffin as CEO of SMCP North America. Gautier joins SMCP from Sergio Rossi in Milan, where he was chief financial officer. A graduate of elite business school HEC Paris, Gautier has also worked for Puma, Redcats, Schneider Electric and PSA Peugeot Citroën. He succeeds Emmanuel Pradère, who is quitting SMCP.
Griffin who replaces Dina Emsalem, was previously president of North America retail at Ted Baker, having held a number of executive roles at the British firm, where he started in 1999 as a regional manager. His mandate is to expand the retail network, build brand awareness, and introduce the Claudie Pierlot brand.