Press Release - SMCP - 2023 Q1 Sales

2023 First quarter
Press release - Paris, April 27th, 2023

Strong start to the year +8% at constant FX,
driven by an excellent momentum in France
and a shift back to growth in APAC

• Q1 2023 sales at €305m, +8% at constant exchange rates (+7% on an organic basis) versus 2022 driven by like-for-like growth despite a high basis of comparison.
• Excellent performance in Europe driven by B&M and digital; Asia back to growth with China’s gradual economic recovery; after an outstanding year in 2022, the trend in America is stabilizing, supported by like-for-like positive growth in the US.
• Continued reduction of the average discount rate with a one-point decrease compared to the first quarter of 2022, coming in particular from digital and Asia.
• The network is decreasing this quarter, mainly due to the permanent shutdown of stores in Russia which had not been supplied since February 2022.
• Full-year financial guidance confirmed.
  
  

Commenting on these results, Isabelle Guichot, CEO of SMCP, stated: “The Group has again delivered a good performance over the first quarter of the year. We are particularly pleased with the strong momentum in France, the dynamism in Europe, the return to growth in Asia and the resilience of our sales in America after an excellent 2022. This quarter also saw the progress in the implementation of our ambitious CSR strategy with the acceleration of the full-traceability project roll-out on brand collections, the launch of Sandro clothing rental in the UK and the launch of our SMCP Retail Lab training school. We remain vigilant regarding the evolution of the macro-economic, social, and geopolitical context but are confident that the positive momentum will continue in the coming quarters and thus confirm our annual targets.”

€m except % Unaudited figures		Q1 2022	Q1 2023	Organic change	Reported change	Constant Fx change
	Sales by region
France		93.7	106.0	+13.1%	+13.1%	+13.1%
EMEA		83.1	88.6	+7.0%	+6.6%	+7.0%
America		38.6	39.0	-2.5%	+1.0%	-2.5%
APAC		67.6	71.0	+2.7%	+5.1%	+6.9%
	Sales by brand
Sandro		134.1	146.0	+7.8%	+8.9%	+8.9%
Maje		112.2	113.8	+0.4%	+1.5%	+1.5%
Other brands1		36.8	44.8	+21.8%	+21.7%	+21.9%
TOTAL		283.0	304.6	+6.7%	+7.6%	+7.6%

SALES BY REGION

In France, sales reached a record level of €106m in the first quarter, with an organic growth of +13% compared to 2022. They were mainly driven by the performance of the like-for-like network and by the demand of local and tourist customers, who are increasingly numerous both in physical shops and on the brands' websites. This double-digit growth is even more remarkable given the high basis of comparison in 2022 and the adverse social environment. The “Other brands” division (Claudie Pierlot and Fursac) recorded a strong momentum in the quarter. The Group also carried on its strategy of reducing the average discount rate, particularly in digital. The network is decreasing by four POS including the closure of the remaining two Suite 341 stores.

In EMEA, the Group maintained a very good momentum with a robust growth despite a high basis of comparison. Sales reached €89m, +7% on an organic basis vs 2022 with a strong retail like-for-like growth of +15% from both B&M and digital sales. The good performance of the largest markets such as the United Arab Emirates, Italy and Spain was partially offset by the end of the wholesale partnership in Russia (last deliveries in February 2022). The average discount rate registered a slight decrease which comes from digital. The network is down by seven POS in Q1 excluding the impact of Russia (40 POS).

In America, after an outstanding performance in 2022, sales are stabilizing in reported change and decreasing by -3% on an organic basis. During the first quarter, sales in the US were resilient with a positive like-for-like growth in B&M. The slightly unfavorable trend comes from Canada where the normalization of traffic is slower due to the low level of tourism from Asia and weak local demand. The network is down by two POS.

In APAC, the growth is progressively back in the region, with €71m of sales in Q1, +3% on an organic basis vs 2022. The trend gradually improved in Mainland China over the quarter with January and February still affected by low traffic, before returning to growth in March. The region benefits from a good performance in Hong-Kong, Singapore, Malaysia and Macau and the integration of Australia and New-Zealand in our own retail network. The average discount rate decreased by more than four points with the normalization of the situation after the Covid constraints. Finally, the network continued to expand with five openings, particularly in China and Singapore.

CONCLUSION AND PERSPECTIVES

Thanks to the strong desirability of its brands, the Group records a good performance in the first quarter.

Subject to the evolution of the macro-economic, social, and geopolitical situation, SMCP confirms its financial guidance for 2023.

OTHER INFORMATIONS

At its meeting of March 23, 2023, the Board of Directors decided to create a Sustainability committee, which will be responsible for monitoring the consideration of social, societal, and environmental responsibility issues when defining the Group’s strategy and its implementation.

FINANCIAL CALENDAR

June 21st, 2023 – Annual shareholders meeting

July 27th, 2023 – 2023 Half-Year 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

Number of DOS	Q1-22	2022	Q1-23		vs. 2022	vs. Q1 2022
By region
France	459	460	456		-4	-3
EMEA	395	395	391		-4	-4
America	165	166	164		-2	-1
APAC	251	259	305		+46	+54
By brand
Sandro	541	551	569		+18	+28
Maje	451	457	476		+19	+25
Claudie Pierlot	209	201	203		+2	-6
Suite 341	3	2	-		-2	-3
Fursac	66	69	68		-1	+2
Total DOS	1,270	1,280	1 316		+36	+46

Breakdown of POS

Number of POS	Q1-22	2022	Q1-23		vs. 2022	vs. Q1 2022
By region
France	460	461	457		-4	-3
EMEA	545	552	505		-47	-40
America	195	198	196		-2	+1
APAC	467	472	477		+5	+10
By brand
Sandro	736	752	733		-19	-3
Maje	618	627	611		-16	-7
Claudie Pierlot	244	233	223		-10	-21
Suite 341	3	2	-		-2	-3
Fursac	66	69	68		-1	+2
Total POS	1,667	1,683	1,635		-48	-32
o/w Partners POS	397	403	319		-84	-78

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 11 April 2023 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

INVESTORS/PRESS
SMCP	BRUNSWICK
Amélie Dernis	Hugues Boëton
	Tristan Roquet Montegon
+33 (0) 1 55 80 51 00	+33 (0) 1 53 96 83 83
amelie.dernis@smcp.com	smcp@brunswickgroup.com

        

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¹ Claudie Pierlot and Fursac brands

 

Attachment

• Press Release - SMCP - 2023 Q1