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SMCP - 2024 Q1 Sales
2024 first quarter
Press release - Paris, April 25th, 2024
Q1 sales down by 5%
in a macroeconomic environment that remains challenging
Detailing the action plan to deliver growth and profitability
First quarter sales
Details and targets of mid-term action plan, based on four key priorities:
Commenting on these results, Isabelle Guichot, CEO of SMCP, stated: « As anticipated, our first quarter remained on a similar trend to that seen in the second half of 2023. We are satisfied with our performance in the United States and our resilience in Europe, except in France, where consumer spending remains volatile. In Asia, our business continues to be affected in China by low in-store traffic, while our sales are dynamic in South-East Asia. During the first quarter, we continued to implement our medium-term action plan, and over the coming months we expect to fully benefit from our global geographic footprint and accelerating performance in high-potential regions. We also expect to gain from our latest technological investments (particularly in digital technology) to achieve greater efficiency, and to continue our disciplined management to ensure profitable growth and a solid financial structure»
SALES BY REGION
In France , sales reached €98m in the first quarter, down -7% on an organic basis vs Q1 2023, which marked a record (Q1 2023 was +13% up vs Q1 2022). The trend in the first quarter 2024 was in line with Q4 2023, but saw an improvement following the end of the official sales period for Sandro, Maje and Fursac, thanks to a good reception of their Spring/Summer collections. While B&M sales were resilient with a nearly flat like-for-like performance for Sandro and Maje, digital sales decreased, impacted by a strong basis of comparison in 2023, especially for Claudie Pierlot.
In EMEA , sales amounted to €89m, in line with Q1 2023. This good performance, given the high basis of comparison, was driven by the South of Europe, especially in brick & mortar. The quarter was tougher in the UK, in the continuity of Q4 2023. Retail partners registered a good performance, especially in the strategic markets (Middle East and Turkey). Apart from the temporary impact of a few relocations currently under process, the network remained relatively stable.
In America , sales were up by +9% organic vs Q1 2023, at €42m. The region signs the best performance of the Group. The US and Mexico recorded a very good performance for both brands Sandro and Maje. Sales in Canada continued to improve sequentially through the quarter and have been back to a positive trend since February. In line with the Group's strategy of geographical rebalancing, the network increased by 3 net openings in Q1.
In Asia Pacific , sales at €57m decreased by -16% on an organic basis vs Q1 2023, with a very polarized situation across the continent. While in Greater China, sales continue to be strongly affected by low traffic in malls, the Group delivered a good performance in South-East Asia (strong double-digit positive in Singapore, Malaysia, Thailand, and Vietnam). To be noted also the first delivery of Fursac merchandise to our South Korea partner. As expected, the network decreased with 10 net closings in China, as initially planned.
CONCLUSION AND PERSPECTIVES
After a year 2023 impacted by a challenging macroeconomic environment, and the first quarter of 2024 following the same trend, the Group provides today more details on its mid-term action plan, articulated around four key priorities:
1. Reboost growth and gain market shares
2. Leverage global exposure
3. Gain in agility and leverage on innovation to improve efficiency to deliver profitability
4. Protect cash to deliver a sound financial structure
Management remains fully committed to delivering the action plan and expects effects by mid-term.
NEXT EVENTS
June 6 , 2024 – Annual Shareholders' Meeting
July 25 , 2024 (post market close) – Publication of 2024 first semester results
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.
APPENDICES
Breakdown of DOS
Breakdown of POS
FINANCIAL INDICATORS NOT DEFINED IN IFRS
Number of points of sale (POS)
The number of the Group's points of sale comprises total retail points of sale open at the relevant date, which includes (i) directly operated stores (DOS), including free-standing stores, concessions in department stores, affiliate-operated stores, outlets and online stores, and (ii) partnered retail points of sale.
Organic sales growth
Organic sales growth is the total sales in a given period compared to the same period in the previous year. It is expressed as a percentage change between the two periods and is presented at constant rates (sales for period N and period N-1 in foreign currencies are converted at the average rate for year N-1) and excluding the effects of changes in the scope of consolidation.
Like-for-like sales growth
Like-for-like sales growth corresponds to retail sales from directly operated points of sale on a like-for-like basis in a given period compared with the same period in the previous year. Like-for-like points of sale for a given period include all of the Group's points of sale that were open at the beginning of the previous period and exclude points of sale closed during the period, including points of sale closed for renovation for more than one month, as well as points of sale that changed their activity (for example, Sandro points of sale changing from Sandro Femme to Sandro Homme or to a mixed Sandro Femme and Sandro Homme store).
Like-for-like sales growth percentage is presented at constant exchange rates.
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METHODOLOGY NOTE
Unless otherwise indicated, amounts are expressed in millions of euros. 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.
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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. These risks and uncertainties include those discussed or identified under Chapter 3 “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.
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 46 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
Claudie Pierlot and Fursac brands
Attachment
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti