French fashion group SMCP encountered a challenging second quarter due to the impact of the Covid-19 pandemic. However, the company observed signs of recovery as the quarter progressed, particularly in Mainland China where sales returned to growth in June. While sales for the Sandro and Maje brands experienced significant drops of 45.8% and 47% respectively, SMCP saw strong growth in its digital channels, with an overall increase of 32% and a notable 39.7% rise in Europe alone.

Recognizing that a return to normalcy will take time, SMCP has made adjustments to its purchasing plans for the AW20 season, reducing them by over 30%. Nevertheless, the company remains financially secure, thanks to a €140 million loan guaranteed by the French government, as well as enhanced flexibility on its financial covenants for the 2020-2021 fiscal year.

Breaking down the figures for Q2, SMCP recorded total sales of €144.1 million. In France, sales dropped by 46% to €47.3 million, although the country showcased relative resilience compared to the rest of Europe. Sales in the EMEA region reached €35.8 million, representing a decrease of 54.9%, while the Americas and Apac experienced declines of 69.4% and 19.5% respectively.

Sales for the Sandro brand declined by 44.9%, amounting to €71.5 million, while Maje saw a decrease of 49% with sales reaching €53.8 million. Other brands under the SMCP umbrella, including Claudie Pierlot and De Fursac, saw their sales decrease by 38.1% to €18.8 million.

Despite reduced foot traffic due to store closures and restricted tourism, SMCP maintained solid conversion rates throughout the quarter. CEO Daniel Lalonde expressed confidence in the company’s ability to navigate through the crisis, highlighting the strength of their business model, the appeal of their brands, and the dedicated efforts of their teams. Digital channels played a pivotal role in supporting sales during the lockdown measures.

Overall, SMCP’s performance in Q2 reflects the significant challenges faced by the fashion industry due to the global pandemic. However, the company’s gradual sales improvement and strong digital growth in key regions provide a glimmer of hope for the future. With financial support from the French government and a resilient business model, SMCP is well-positioned to withstand the ongoing uncertainties and emerge stronger from this unprecedented crisis.

For more information on SMCP’s performance during Q2, please visit:
SMCP Q2 2020 Results

To learn more about the fashion industry’s challenges during the pandemic, you can access:
Business of Fashion