SMCP, the renowned fashion retail giant, is exhibiting remarkable signs of recovery as its second-quarter sales approach pre-pandemic levels. The company announced a staggering 59.1% surge in sales, amounting to €229.4 million on a reported basis. On an organic basis, the increase reached 61.1% in comparison to the same period last year. Although these figures are somewhat distorted due to the challenges faced during the initial wave of the pandemic, SMCP is steadily progressing towards its Q2 2019 numbers, with a mere decline of 14% compared to two years ago.

This recovery is particularly encouraging considering the hardships the company has confronted in recent periods. While some fashion retailers have already surpassed their 2019 figures, SMCP’s low-double-digit decline is commendable. The company has exhibited exceptional growth in specific markets, underscoring its capability to surpass pre-pandemic levels. Notably, mainland China witnessed a remarkable 22% growth compared to Q2 2019, while the United States experienced not only a return to pre-pandemic sales but also an impressive 11.3% growth compared to 2019.

Despite facing store closures in key countries and the loss of tourism-related sales in Q2 this year, SMCP recorded a 16% decrease in sales compared to Q2 2019 in the EMEA (Europe, Middle East, and Africa) region. This performance can be attributed to the company’s shift towards a less promotional environment, coupled with the successful implementation of ship-from-store services across Europe. Additionally, SMCP has made substantial progress in its full-price strategy, with a significant reduction in the share of promotional sales in its overall revenue.

Examining the sales figures by brand, Sandro, the company’s largest label, witnessed a substantial 51.6% increase in sales, amounting to €108.4 million. Maje, another prominent brand under SMCP, also experienced a significant surge of 73.9%, reaching €93.5 million. The “other brands,” including Claudie Pierlot and De Fursac, showcased a notable 45.6% increase in sales, reaching €27.4 million. These figures substantially surpass the overall sales growth throughout the first half of the year, providing an underlying reason for CEO Daniel Lalonde’s cautious optimism.

Another positive development for SMCP is the acceleration of its digital sales, with the company generating a digital sales penetration of 25%. This emphasizes the crucial significance of SMCP’s online presence. Correspondingly, SMCP has strategically optimized its physical store network, the company closed 19 directly operated stores while simultaneously opening 14 new ones in the Asia-Pacific region, including 11 in China.

CEO Daniel Lalonde expresses cautious optimism for the second half of 2021, exhibiting confidence in all markets. SMCP’s strong recovery in Q2 sales, coupled with its strategic initiatives and adaptability, positions the company well for sustained growth and future success in the post-pandemic fashion retail landscape.

Link 1: SMCP Official Website
Link 2: Business of Fashion