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Third-quarter sales close to pre-pandemic levels of 2019, reports SMCP

Jeremy Lim
27 October 2021

French fashion company SMCP said today that its third-quarter sales has risen to near pre-pandemic levels of 2019, due to brisk demand in Europe and the United States.

Revenues rose 8.4% year-on-year on an organic basis to €271.7 million in the three months to 30 September, compared with a jump of 61.1% in the previous quarter, the group reported in a statement. But its performance continued to improve progressively in comparison with 2019 despite some local Covid-19 resurgences.

The parent company of accessible luxury labels Sandro, Maje, Claudie Pierlot and De Fursac said it is confident of reaching its overall target of €1 billion ($1.2 billion) in sales for 2021, after its third-quarter sales rose to €271.7 million, from €248.4 million a year earlier.

Digital sales have stabilised at 24% of revenues in the first nine months of the year as the company has reopened its physical stores and reduced markdowns in products.

SMCP reported a “positive dynamic” across all its markets in the first weeks of October, with strong sales in Mainland China, a solid performance in the United States and a good trend in Europe.

In France, SMCP’s home market, revenues fell 10.4% on an organic basis, an improvement from the 28% drop recorded in the previous quarter. In the EMEA region, sales were down by 8.6%.

In Mainland China, organic sales increased by 15.8% from two years ago, while in the APAC region as a whole, they rose 7.3%. In the Americas, sales increased by 10.4%, with the US posting 15.2% growth.

The Group said it continued to progress with its "One Journey" strategic plan, which involves brand initiatives to engage Millennials and implementing ship-from-store across Europe. It is also rationalising its store portfolio, reducing the promotional sales share and decreasing its discount rate. It continued to expand in Asia-Pacific, meanwhile, opening 19 new doors, mainly in China.

Commenting on those results, Isabelle Guichot, who took over as chief executive of SMCP in August, said: “We delivered a solid performance in Q3 allowing us to post sales close to their pre-pandemic level of 2019. We are particularly pleased with our sales trend in the U.S., which continues to outperform thanks to strong demand. In Mainland China, sales recorded double-digit growth vs 2019 despite the resurgence of Covid cases locally. Sales in France and EMEA are also approaching their pre-crisis level, despite reduced tourism.

"While our digital sales share stabilises with the complete reopening of physical stores and the decline in liquidation operations, we have made significant progress on optimising our network and our full price strategy, in line with the 'One Journey' strategic plan presented last year. Looking forward, after having observed a positive dynamic across all markets during the first weeks of October, we are confident in our capacity to reach 1 billion euros in full-year 2021 sales.”

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