SMCP - Press Release - 2024 Q3 Sales
Q3 2024 Sales
Press release - Paris, October 29th, 2024
Q3 performance driven by Europe and the
US
Environment still challenging in China
- Q3
2024 Sales at €293m, decreasing by -0.9% on an
organic0F0F1 basis vs. Q3 2023 Sales at €295m
- Sales growth
of +3.1% on an organic basis excluding China, with a good
resilience of sales in America and Europe (despite a negative
effect of Olympic Games in Paris on the business)
- Trend
improvement in September, in particular in France and Europe
- Continued
strict full-price strategy with a two-point decrease of average
in-season discount rate vs Q3 2023
- 9M
2024 Sales at €878m, decreasing by -2.7% on an organic
basis vs 9M 2023 Sales at €905m; excluding China, sales grow by
+1.4% on an organic basis
- Good
performance for Sandro and Maje in all the markets excluding
China
-
Pursuit of network optimization
with 35 net closings in the quarter, notably in Asia and for
Claudie Pierlot in Europe, to reach 1,666 POS
- Pursuit of
mid-term action plan of savings to get back to
profitable growth
Commenting on those results, Isabelle
Guichot, CEO of SMCP, stated: “As anticipated, our
growth in the third quarter progressively improved, but remains
impacted by the deteriorated environment in China. In France, we
posted a resilient performance, despite the impact of the Olympic
Games in July and August. We also recorded a solid performance in
the rest of Europe, thanks to the continuation of our strict
discount rate policy, and in America, where the economic
environment remains volatil. In this context, we continued to
implement our action plan (particularly in China), and notably made
significant progress in pursuing the store network optimization
plan, as well as in renegotiations with our lessors. All the
Group's teams are fully committed to pursuing the action plan
initiated at the beginning of the year, aimed at stimulating our
growth while ensuring our financial solidity and protecting our
profitability. We are confident that this plan will deliver first
tangible results as early as 2025.”
SALES
€m |
Q3
2023 |
Q3
2024 |
Organic
change |
Reported
change |
|
9M
2023 |
9M
2024 |
Organic
change |
Reported
change |
Sales
by region |
|
|
|
|
|
|
|
|
|
France |
97.5 |
97.8 |
+0.4% |
+0.4% |
|
301.4 |
300.3 |
-0.4% |
-0.4% |
EMEA ex. France |
96.5 |
102.0 |
+5.4% |
+5.8% |
|
285.6 |
293.8 |
2.3% |
2.9% |
America |
42.7 |
45.0 |
+6.6% |
+5.4% |
|
123.0 |
129.8 |
6.1% |
5.6% |
APAC |
58.2 |
47.7 |
-18.6% |
-18.0% |
|
194.7 |
153.9 |
-19.5% |
-20.9% |
Sales by brand |
|
|
|
|
|
|
|
|
|
Sandro |
143.3 |
145.3 |
+1.3% |
+1.4% |
|
438.8 |
437.6 |
0.0% |
-0.3% |
Maje |
112.4 |
113.1 |
+0.5% |
+0.7% |
|
340.9 |
332.0 |
-2.3% |
-2.6% |
Other brands2 |
39.2 |
34.1 |
-13.1% |
-13.0% |
|
125.0 |
108.2 |
-13.6% |
-13.4% |
TOTAL |
294.9 |
292.6 |
-0.9% |
-0.8% |
|
904.7 |
877.9 |
-2.7% |
-3.0% |
SALES BREAKDOWN BY REGION
In France, sales reached €300m
in the first nine months, remaining fairly stable (-0.4%) compared
to 2023. Third-quarter sales (+0.4% vs. Q3 2023) were impacted in
July and August by the organization of Olympic Games, particularly
in Paris, with touristic flows concentrated over just a few weeks,
coupled with a drop in local consumer traffic. However, consumer
trends and traffic have improved significantly since the beginning
of September. The fall/winter collections have been very well
received and the season has started off well, particularly for
Sandro and Maje.
The network recorded seven net closings during the quarter,
particularly at Claudie Pierlot.
In EMEA, sales reached €294m at
the end of September, i.e. an organic increase of +2.3% compared to
2023. The third quarter (+5.4% vs Q3 2023) records a consistent
growth in the North and in the South of Europe, and benefits from a
strict full-price strategy. The consumption environment,
unfavourable in Q3 3023, is improving. Like-for-like performance is
positive in the largest retail markets. Retail partners trend
remains positive, notably in the Middle East.
The network recorded 15 net closings during the quarter (notably
Claudie Pierlot and some relocations).
In America, sales reached €130m
in the first nine months, an organic increase of +6.1% compared to
2023. This good performance is supported by steady Q3 sales (+6.6%
vs Q3 2023) despite a challenging environment. In the US, Sandro
and Maje showed a consistent trend, leading to a solid performance
in Q3. In Mexico, sales recorded a strong performance during the
quarter.
The network is decreasing with five net closings during the
quarter.
In APAC, sales reached €154m at
the end of September, decreasing by -19.5% organic vs 2023. The
trend in the third quarter is similar (Q3 2024 -18.6% vs Q3
2023).
In China, third-quarter sales continue to be impacted by a
deteriorated environment and a decline in traffic. In this context,
where consumer confidence remains low, the Group is continuing its
action plan, notably with immediate initiatives such as
negotiations with landlords and store network optimization.
Nevertheless, the Group remains fully confident in the potential of
the Chinese market and is implementing initiatives to capitalize on
upcoming opportunities when demand picks up.
In the rest of Asia, sales remained resilient, with a positive
trend in Malaysia and Thailand, and an improving situation in South
Korea.
The network is decreasing with eight net closings during the
quarter, including ten closings in China, in line with the
announced action plan.
CONCLUSION AND OUTLOOK
In a macroeconomic environment that remains
complex and uncertain, SMCP continues to focus on executing its
action plan to ensure financial strength and support future
growth.
As planned, the Group continued in the third
quarter to readjust its network and accelerate its Retail partners
activity, the effects of which will intensify over the coming
quarters (with the imminent opening of the first stores in India
and ongoing development in Southeast Asia).
The Group remains committed to a sound
management of cash and debt, through expense optimization and
careful inventory management.
FINANCIAL CALENDAR
February 27, 2025 – 2024 Results publication
April 29, 2025 – 2025 Q1 Sales publication
June 12, 2025 – Annual Shareholding meeting
A conference call with
investors and analysts will be held today by CEO Isabelle Guichot
and CFO Patricia Huyghues Despointes, from 9:00 a.m. (Paris time).
Related slides will also be available on the website
(www.smcp.com), in the Finance section.
METHODOLOGY NOTE
Unless otherwise indicated, amounts are
expressed in millions of euros and rounded to the first digit after
the decimal point. In general, figures presented in this press
release are rounded to the nearest full unit. As a result, the sum
of rounded amounts may show non-material differences with the total
as reported. Note that ratios and differences are calculated based
on underlying amounts and not based on rounded amounts.
DISCLAIMER: FORWARD-LOOKING STATEMENTS
Certain information contained in this document
includes projections and forecasts. These projections and forecasts
are based on SMCP management's current views and assumptions. Such
forward-looking statements are not guarantees of future performance
of the Group. Actual results or performances may differ materially
from those in such projections and forecasts as a result of
numerous factors, risks and uncertainties, including the impact of
the current COVID-19 outbreak. These risks and uncertainties
include those discussed or identified under Chapter 2 “Risk factors
and internal control” of the Company’s Universal Registration
Document filed with the French Financial Markets Authority
(Autorité des Marchés Financiers - AMF) on 5 April 2024 and
available on SMCP's website (www.smcp.com).
This document has not been independently verified. SMCP makes no
representation or undertaking as to the accuracy or completeness of
such information. None of the SMCP or any of its affiliate’s
representatives shall bear any liability (in negligence or
otherwise) for any loss arising from any use of this document or
its contents or otherwise arising in connection with this
document.
APPENDICES
Breakdown of point of sales by region
Number of DOS |
Q3-23 |
2023 |
H1-24 |
Q3-24 |
|
Q3-24
variation |
2024
variation |
|
|
|
|
|
|
|
|
By
region |
|
|
|
|
|
|
|
France |
463 |
470 |
475 |
468 |
|
-7 |
-2 |
EMEA |
401 |
411 |
406 |
395 |
|
-11 |
-16 |
America |
171 |
176 |
180 |
173 |
|
-7 |
-3 |
APAC |
314 |
316 |
280 |
270 |
|
-10 |
-46 |
|
|
|
|
|
|
|
|
By
brand |
|
|
|
|
|
|
|
Sandro |
583 |
591 |
579 |
565 |
|
-14 |
-26 |
Maje |
485 |
490 |
479 |
472 |
|
-7 |
-18 |
Claudie
Pierlot |
206 |
210 |
201 |
190 |
|
-11 |
-20 |
Fursac |
75 |
82 |
82 |
79 |
|
-3 |
-3 |
Total DOS |
1,349 |
1,373 |
1,341 |
1,306 |
|
-35 |
-67 |
Number of POS |
Q3-23 |
2023 |
H1-24 |
Q3-24 |
|
Q3-24
variation |
2024
variation |
|
|
|
|
|
|
|
|
By
region |
|
|
|
|
|
|
|
France |
464 |
471 |
475 |
468 |
|
-7 |
-3 |
EMEA |
540 |
555 |
546 |
531 |
|
-15 |
-24 |
America |
209 |
215 |
221 |
216 |
|
-5 |
+1 |
APAC |
491 |
489 |
459 |
451 |
|
-8 |
-38 |
|
|
|
|
|
|
|
|
By
brand |
|
|
|
|
|
|
|
Sandro |
765 |
775 |
764 |
749 |
|
-15 |
-26 |
Maje |
633 |
640 |
628 |
622 |
|
-6 |
-18 |
Claudie
Pierlot |
231 |
233 |
226 |
215 |
|
-11 |
-18 |
Fursac |
75 |
82 |
83 |
80 |
|
-3 |
-2 |
Total POS |
1,704 |
1,730 |
1,701 |
1,666 |
|
-35 |
-64 |
o/w partners |
355 |
357 |
360 |
360 |
|
- |
+3 |
ABOUT SMCP
SMCP is a global leader in the accessible luxury
market with four unique Parisian brands: Sandro. Maje. Claudie
Pierlot and Fursac. Present in 48 countries. the Group comprises a
network of over 1.600 stores globally and a strong digital presence
in all its key markets. Evelyne Chetrite and Judith Milgrom founded
Sandro and Maje in Paris. in 1984 and 1998 respectively. and
continue to provide creative direction for the brands. Claudie
Pierlot and Fursac were respectively acquired by SMCP in 2009 and
2019. SMCP is listed on the Euronext Paris regulated market
(compartment A. ISIN Code FR0013214145. ticker: SMCP).
CONTACTS
INVESTORS/PRESS
|
|
|
|
SMCP
|
BRUNSWICK |
Amélie
Dernis |
Hugues Boëton +33 6 79 99 27 15 |
+33 (0) 1 55 80 51
00 |
Tristan Roquet Montegon +33 6 37 00 52 57 |
amelie.dernis@smcp.com |
smcp@brunswickgroup.com |
1 Organic growth | All references in
this document to the “organic sales performance” refer to the
performance of the Group at constant currency and scope
2 Claudie Pierlot et Fursac
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