French fashion group SMCP has released its Q4 update, reporting stable sales figures compared to the previous year, despite challenging economic conditions. The company, which owns popular brands such as Sandro, Maje, Claudie Pierlot, and Fursac, faced various obstacles including geopolitical tensions, weak consumer spending, and persistent inflation. Despite these challenges, SMCP managed to offset a difficult month in December in Europe, particularly in France, and a slower-than-expected month in China with strong performance in the United States.

One of the key factors contributing to SMCP’s stable sales was its strict discount policy, which helped to maintain consumer interest even in a tough economic environment. The company now expects its sales to reach approximately €1.23 billion, with a constant foreign exchange growth rate of 3.8% compared to the previous year. This is slightly below the initial forecast of mid-single-digit growth.

Moreover, SMCP has adjusted its forecast for the adjusted EBIT margin, which is now expected to be between 6.4% and 6.6% of sales, instead of the previously projected 7% to 9% of sales. Despite this adjustment, the company remains focused on maintaining financial strength and has accelerated its savings plan. As a result, SMCP has managed to reduce its year-end net debt and lower its stock levels.

Looking ahead, SMCP will release its full-year results on 28 February, providing a more comprehensive overview of its performance for 2023. The company will also share further details regarding its savings plan for 2024. These results will offer valuable insights into how SMCP has navigated the challenging economic landscape and will provide investors and industry analysts with a clearer understanding of the company’s future prospects.

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