Press Release – Paris, September 18, 2023
Adjustment of oneannual guidance one in spoiled Economic Environment
SMCP, parent company of the Sandro, Maje, Claudie Pierlot and Fursac brands, has adjusted its 2023 annual guidance, and now targets:
“Mid-to-high-single-digit sales growth on stable FX vs. mid-single digit sales growth on stable FX to 2022”, previously, and
Adjusted EBIT margin between 7% and 9% versus «improvement in full-year EBIT margin compared to 2022», i.e. 9.2% of sales, first.
Since the group’s last publication at the end of July, market conditions have worsened overall, with growth slowing in Europe in persistent inflationary environments such as France, where the market as a whole has recorded sluggish consumption since the beginning of August. (the IFM index fell 4.6% in August), or in other countries such as Switzerland and Italy. Meanwhile, Chinese consumption has not followed the expected trajectory, leading indicators in China indicate.
For the second half of the year, the Group targets moderate growth in sales compared to 2022, with the third quarter being stable or slightly lower, and the fourth quarter more in line with the trend seen in the first semester, with profits particularly Favorable base effect in China.
The adjustment to sales annual guidance results in a mechanical reduction in the 2023 EBIT margin target, despite reinforced cost monitoring.
In this context, the Group is fully committed and focused on implementing its action plan based on four key pillars and in line with its CSR strategy:
continuation of full value strategy;
Prioritizing investments with a particular focus on marketing and IT spending;
Qualitative expansion of physical and digital networks, with more visible impact by the end of the year;
and improving the productivity of store teams, as well as adjusting recruitment policy in head office teams.
Despite this adjustment, and thanks to this action plan supported by committed teams and the desirability of strong brands, SMCP is confident of its resilience in this deteriorating environment, and will continue to seize growth opportunities in the coming months and years .
October 26, 2023 – Q3 2023 Sales Release
Disclaimer: Forward Looking Statements
Some of the information contained in this document contains estimates and forecasts. These estimates and forecasts are based on the current views and assumptions of SMCP management. Such forward-looking statements are not guarantees of the Group’s future performance. Actual results or performance may differ materially from such estimates and forecasts as a result of a number of factors, risks and uncertainties. These risks and uncertainties include the risks discussed or identified under Chapter 3 “Risk Factors and Internal Controls” of the Company’s Universal Registration Document filed with the French Financial Market Authority (Autorité des Marchés Financiers – AMF) on 11 April 2023. and are available on SMCP website. www.smcp.com).
This document has not been independently verified. SMCP makes no representations or undertakings as to the accuracy or completeness of such information. SMCP or any of its affiliated representatives will not have any liability (negligent or otherwise) for any damages arising from any use of this document or its contents or otherwise arising in connection with this document.
About this SMCP
SMCP is a global leader in the accessible luxury market with four unique Parisian brands: Sandro, Maje, Claudie Pierlot and Fursac. Present in 46 countries, the group comprises a network of over 1,600 stores globally and a strong digital presence across all its key markets. Evelyn Chatrait and Judith Milgrom founded Sandro & Majé in Paris in 1984 and 1998, respectively, and continue to provide creative direction for the brands. Claudie Pierlot and Fersac were acquired by SMCP in 2009 and 2019 respectively. SMCP is listed on the Euronext Paris regulated market (compartment A, ISIN code FR0013214145, ticker: SMCP).
1 especially caixin PMI services index, which fell from 54.1 in July to 51.8 in August.