(BFM Bourse) – The “accessible luxury” specialist announced a 20% increase in sales in the first half of 2022 despite the numerous store closures in China. Above all, SMCP’s net profit took off over the period to return to pre-pandemic levels. This solid performance allows the tricolor group to confirm its annual objectives for the current financial year.
The ready-to-wear group that owns the Sandro, Maje, Claude Pierlot and de Fursac brands published solid half-year accounts, marked in particular by a return to profits at a pre-pandemic level despite a decline in sales in Asia-Pacific due numerous confinements in certain countries in the area.
Between January and the end of June 2022, the SMCP group recorded a 24.7% increase in its sales in published data (+21.4% on an organic basis) to stand at a “record” level of 565.4 million euros. . The company is pleased to have achieved an “excellent performance in Europe throughout the semester, a strong momentum in the Americas region” which “partially” compensated for a decline in activity in Asia-Pacific due to restrictive measures relating to Covid in the region. Long-term store closures as well as the total closure of the group’s warehouses in Hong Kong and then in mainland China, caused sales to fall by 24% in the area between January and the end of June. E-commerce sales increased sharply to 22% of turnover compared to 15% in 2019.
Fewer promotions, more profitability
SMCP also indicates that it has continued with its new strategy, which consists of “deliberately reducing the share of promotional sales” and “significantly reducing the discount rate” both in the network of physical stores and online. This management of rebates results, among other things, in an increase in adjusted EBITDA, from 98.5 million euros in the first half of 2021 to 121.8 million euros between January and June 2022. Adjusted EBIT soars by 76% to stand at 45 million euros as of June 30, 2022, i.e. a corresponding margin of 8%.
The group’s positioning on the “accessible luxury” market allows it to hold its own in a clothing sector in crisis. The Camaïeu brand has just been placed in receivership after declaring itself insolvent last week.
The ready-to-wear group, owner of the Sandro, Maje, Claude Pierlot and de Fursac brands, thus announced a net profit of 20.7 million euros over the first six months of its financial year, against profits housed under one million euros (900,000 euros) over the first six months of the 2021 financial year. Or profits multiplied by 20 over one year. The group thus returns to its pre-pandemic profit levels which were then 20.1 million euros in the first half of 2019.
SMCP thus confirms its forecasts for the whole of 2022 provided that the geopolitical and macroeconomic situation does not “deteriorate further”. At the start of the year, the group had indicated that it was aiming for double-digit growth in sales compared to those of 2021, an adjusted EBIT margin in line with 2021 (9.2% in 2021) “in a marked inflationary context “, and a net debt ratio of less than 2x at the end of 2022.
The SMCP title rebounded gently on Tuesday, grabbing 0.3% to 5.485 euros around 3:30 p.m., but considerably reduced its lead compared to an opening up 4.7%.
Sabrina Sadgui – ©2022 BFM Bourse
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