SMCP, the French premium fashion company that owns popular brands including Sandro, Maje, Claudie Pierlot, and Fursac, has reported record-breaking sales in the third quarter of 2022. Despite challenges in the Asia-Pacific region due to Covid-related restrictions in China, the company achieved solid organic growth. Q3 sales increased by 9.4% on an organic basis and 13.5% on a reported basis compared to the same period in 2021, reaching €308 million. In the first nine months of the financial year, SMCP’s sales rose by 17% organic and 20.5% reported, amounting to €874 million.

The impressive sales performance can be attributed to the strong momentum experienced in Europe and North America during Q3. However, the Asia-Pacific region continues to face difficulties due to Covid restrictions in Mainland China, resulting in a gradual improvement in Q3 but a decline of 11.8% compared to the previous year. Despite these challenges, SMCP’s brands have done well, benefiting from robust sales in physical stores as well as dynamic digital sales, which accounted for 21% of the total turnover so far this year.

Taking a closer look at sales by region and brand, France saw a significant increase of 13.5% in Q3, reaching €99.1 million, while the rest of Europe, Middle East, and Africa (EMEA) rose by 20.4% to €98.6 million. Sales in the Americas also increased by 12.5% to €49 million. In the Asia-Pacific region, sales fell by 11.8% to €61.6 million, primarily due to the Covid restrictions in Mainland China. However, APAC excluding China showed improvement in Q3 compared to the previous year, with strong performances in countries like Korea, Singapore, Malaysia, and Australia.

Notably, Sandro, Maje, and the other brands under SMCP also experienced positive organic growth in Q3. Sandro sales increased by 9.5% to €150.2 million, Maje saw an 8% growth to €119.9 million, and the other brands increased by 13.9% to €38.3 million. The success in France was attributed to the collections of all four brands, as well as the influx of tourists during the summer from the Americas, Middle East, Europe, and some APAC nationalities. In the EMEA region, physical stores and digital retail combined saw a remarkable 51% like-for-like increase, resonating well with both local customers and tourists in most European countries.

Despite the challenges faced in the APAC region, particularly in Mainland China with store closures and reduced footfall, there was a gradual improvement in Q3 compared to the first half of the year. APAC excluding China performed well, supported by strong performances in Korea, Singapore, Malaysia, and Australia. In North America, SMCP made progress in both physical and digital stores, with the US, Canada, and Mexico all recording excellent momentum, despite a tough comparison basis.

Isabelle Guichot, CEO of SMCP, highlighted the strong momentum in Europe and the United States, driven by successful collections and demand from local clients and tourists. The company’s full-price strategy and reduction in the discount rate contributed to its success. SMCP also emphasized its commitment to corporate social responsibility (CSR) and the implementation of its CSR strategy. Based on the strong performance in the first nine months of the year, SMCP has confirmed its full-year guidance, as long as the international situation does not worsen further in the final quarter.

Sources:
– SMCP Official Website: https://www.smcp.com/en
– Reuters: https://www.reuters.com/business/retail-consumer/sandros-owner-smcp-posts-strong-q3-sales-2022-10-13/