Insights
- French company SMCP Group reported a 1 per cent decline in Q3 FY23 sales to €295 million but saw a 5 per cent rise in nine-month sales to €905 million.
- Amidst varying market conditions, the company opened 46 new stores, reaching 1,704 points of sale.
- SMCP expects mid-single digit sales growth and an adjusted EBIT margin of 7-9 per cent for FY23.
SMCP Group, a French company specialising in accessible luxury ready-to-wear, has reported a slight dip in sales for the third quarter of fiscal 2023 (Q3 FY23), recording €295 million, a 1 per cent decline at constant exchange rates and a 2 per cent drop on an organic basis, compared to the strong performance in the same period last year. However, the first nine months of FY23 showed more promise, with sales amounting to €905 million, marking a 5 per cent increase at constant exchange rates and a 4 per cent uptick on an organic basis against FY22 figures.
The third quarter was characterised by a slowdown in consumption across European and American markets, as well as a slow and weak recovery of China's economy. Nonetheless, other Asian markets exhibited a more positive trend. The sales performance was consistent across all of SMCP's brands, which include Sandro, Maje, Claudie Pierlot, and Fursac.
French company SMCP Group reported a 1 per cent decline in Q3 FY23 sales to €295 million but saw a 5 per cent rise in nine-month sales to €905 million.
Amidst varying market conditions, the company opened 46 new stores, reaching 1,704 points of sale.
SMCP expects mid-single digit sales growth and an adjusted EBIT margin of 7-9 per cent for FY23.
During Q3, the company expanded its network with 46 net new openings, bringing the total number of points of sale to 1,704. Liquidity concerns were also addressed, as the group secured an extension of its financing arrangements until 2026/2027, a move finalised last July, the company said in a media release.
SMCP Group has confirmed its full-year guidance, which was revised in September. The company is projecting mid-single digit growth of sales at constant exchange rates for FY23 compared to FY22. The adjusted EBIT margin is expected to be between 7 per cent and 9 per cent.
Fibre2Fashion News Desk (DP)
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