Affordable luxury fashion group SMCP achieves double-digit growth
Affordable luxury fashion group SMCP has cited Asia as one of the reasons for double-digit growth across all its brands in the first half year.
The French-headquartered affordable luxury brand has reported global consolidated sales of €493.3 million, up 15.5 per cent at constant currency, driven by “outstanding” growth outside Europe of 27.2 per cent.
CEO Daniel Lalonde said double-digit growth was achieved across all brands, together with “strong profitability” and a resulting reduction in debt.
SMCP owns three contemporary Parisian fashion brands: Sandro, Maje and Claudie Pierlot. As at the end of last year, the brands were available at 1300 points of sale in 39 countries.
Globally, like-for-like sales growth remained strong over the first semester, reaching 5.8 per cent, “driven by the dynamism of the brick and mortar store network as well as the exceptional results of the digital strategy,” which reached 14.3 per cent of net group sales.
“This achievement underlines the effectiveness of our strategy, to generate profitable growth through the dynamic expansion of our core business, the success of our e-commerce approach and new store openings in highly attractive locations,” said Lalonde.
“It also attests to the creativity and talent of our teams across the world. This well-executed strategic roadmap will continue to drive our long-term vision for the group.”
Adjusted earnings before tax increased by 14.8 per cent from €73.1 million to €83.9 million in the first half, driven by strong sales growth and expanded margins.
“This margin expansion is the result of a strong retail margin driven by the growing share of e-commerce and Asia-Pacific … while maintaining the pace of investment to support future growth.”
Group net income rose from €1.1 million in the first half of last year to €27.4 million during the same period this year.
Figures for Asia were not broken out, but the company has recently invested significant amounts in opening stores in Hong Kong and in Southeast Asia.