French fashion group SMCP, known for its popular brands Sandro, Maje, and Claudie Pierlot, has recently disclosed that the outbreak of the Covid-19 virus in China has severely impacted its sales and profitability in the country. With China being a crucial market for SMCP, the closure of its stores due to the virus has had a significant negative effect on the company’s business.

The repercussions of the virus are not confined to China alone, as SMCP is also witnessing a decline in Chinese tourists in other regions. Initially, the company showcased strong performance in mainland China during January’s first three weeks. However, the closure of a considerable number of its stores, along with limited opening hours for the remaining ones, has undeniably disrupted its overall operations.

In response to these challenges, SMCP made the decision to postpone its anticipated capital market day, originally scheduled for April 2, until September 30. This delay signifies the company’s acknowledgment of the current uncertainties and its commitment to reassess the situation before making any major strategic decisions.

Daniel Lalonde, CEO of SMCP, expressed his gratitude towards the company’s local workers, recognizing their dedication and hard work during this challenging period. He has further emphasized the criticality of prioritizing the safety and well-being of both employees and customers. Despite the ongoing crisis, SMCP has implemented various measures to mitigate the impact on its business operations.

CEO Lalonde remains optimistic about the long-term prospects of the company. He believes that SMCP’s strategic approach, coupled with the strength of its brands, will enable them to recover and thrive in the Chinese market. To gain further insights into the effects of the virus on SMCP’s business, we will have to wait until the company announces its full-year results on March 25.

Useful Links:
1. For more information on SMCP and its brands, you can visit their official website: Sandro, Maje, Claudie Pierlot.
2. Stay updated with the latest news on the Covid-19 virus and its impact on businesses worldwide through reliable sources such as the World Health Organization: World Health Organization.