SMCP reveals revenue growth of 24% in Q1 2022
The France-based company posted €283 million in sales for the quarter, up 23.7% on an organic basis compared to the same period in 2021, alongside "progressive improvement in France over the quarter which outperformed the market."
Despite a good start to the quarter in the Asia Pacific, with a successful Chinese New Year period, the company reported that recent Covid restrictions "had a significant impact on sales, first in Hong Kong and later in Mainland China".
SMCP said it saw "outstanding momentum" as it continued its full-price strategy while its digital penetration reached 25%, up 10 percentage points compared to 2019 level (15%).
In line with its One Journey plan, the company reported "strong progress full price strategy", notably through the deliberate reduction of the promotional sales share, and decrease in discount rates.
Looking ahead, SMCP anticipates "solid" double-digit sales growth compared to 2021 and mid-single-digit sales growth compared to 2019, but remains cautious over the health context in in the Asia Pacific.
Commenting on these results, Isabelle Guichot, CEO of SMCP, stated: "First quarter sales recorded strong growth, and we are particularly pleased with our performance in the Americas and EMEA regions, which demonstrates the relevance of our strategy and the proven success of our brands internationally. Despite a strong start to the quarter in APAC, the resurgence of Covid and the restrictions imposed have had a significant impact on our performance.
"Looking ahead to the rest of the year, we are closely monitoring the health situation in APAC, and we restate our financial targets provided that the situation improves relatively quickly."