SMCP - Q3 2022 Sales
2022 Third quarterPress release -
Paris, October 26th, 2022
Record sales in Q3 despite Covid-related
restrictions in ChinaSolid organic growth compared
to 2021Confirmation of 2022 full-year
guidance
- Q3 2022 record
sales at €308m, +9.4% on an organic basis and +13.5% on a reported
basis vs 2021. Over the first 9 months, the Group recorded a strong
performance with €874m of sales, +17% on an organic basis and
+20.5% on a reported basis
- Europe and
North America continue to benefit from a very good momentum in Q3.
APAC is still affected by Covid restrictions in Mainland China but
the Q3 trend is of gradual improvement
- Solid Q3
performance across all brands
- Strong
performance benefiting from like-for-like point of sales (+19% in 9
months) and dynamic digital sales (21% of total sales)
- The dynamic of
the four brands and the success of the collections enable SMCP to
successfully continue the average discount rate reduction strategy,
with a reduction of 5 points in 9 months (of which 2.5pp in
Q3)
- Full-year
financial guidance confirmed
Commenting on these results, Isabelle
Guichot, CEO of SMCP, stated: “The group registered
record sales in Q3 based on the solid growth of all brands. This
performance reflects a strong momentum in Europe, notably thanks to
the success of collections with local clients and the return of
tourists, as well as in the United States where demand remains
significant, in line with preceding quarters. In Mainland China,
our sales remained impacted by the fall in shop traffic due to
Covid-related restrictions. We nevertheless observed an improvement
in our performance this quarter. We have equally pursued our full
price strategy with success by substantially lowering the discount
rate. We registered more and more qualitative digital sales in a
context of a normalization of the share of digital sales. Finally,
we have accelerated the implementation of our CSR strategy. In view
of our performance in the first nine months of the year, and
provided that the international situation does not deteriorate
further in the final quarter, we confirm our full-year
guidance.”
€m except %
Unaudited figures |
Q3 2021 |
Q3 2022 |
Organicchange |
Reportedchange |
|
9M 2021 |
9M 2022 |
Organicchange |
Reported change |
Sales by region |
|
|
|
|
|
France |
88.4 |
99,1 |
+13,5% |
+11,9% |
|
230.3 |
293,8 |
+30,2% |
+27,5% |
EMEA |
81.3 |
98,6 |
+20,4% |
+21,4% |
|
195.3 |
272,0 |
+37,9% |
+39,3% |
Americas |
37.8 |
49,0 |
+12,5% |
+29,9% |
|
96.9 |
132,1 |
+22,1% |
+36,4% |
APAC |
64.2 |
61,6 |
-11,8% |
-4,1% |
|
202.6 |
175,8 |
-20,1% |
-13,2% |
Sales by Brand |
|
|
|
|
|
Sandro |
131,5 |
150.2 |
+9,5% |
+14,2% |
|
343.5 |
416,9 |
+17,0% |
+21,4% |
Maje |
106,5 |
119.9 |
+8,0% |
+12,6% |
|
289.4 |
343,8 |
+14,7% |
+18,8% |
Other
brands1 |
33,8 |
38.3 |
+13,9% |
+13,5% |
|
92.1 |
113,0 |
+23,8% |
+22,8% |
TOTAL |
271,7 |
308.4 |
+9,4% |
+13,5% |
|
725.0 |
873,8 |
+17,0% |
+20,5% |
SALES BY
REGION
In France, 9-month sales
reached €294m, +30% on an organic basis vs 2021 supported by
like-for-like points of sales. The third quarter saw a double-digit
growth with a basis of comparison higher than in H1.The solid
performance is based on the success of the four brands’ collections
and on good tourism flows during the summer (coming from Americas,
Middle East, Europe, and some APAC nationalities). The reduction of
discount rate continued and reached -8pp vs. 2021 YTD.
In EMEA (Europe excluding
France and Middle East), SMCP delivered an excellent performance
with 9-month sales of €272m, +38% on an organic basis vs 2021 of
which +51% like-for-like, coming from brick-and-mortar and digital
retail (own websites and e-partners). Third quarter sales were up
+20% on an organic basis benefiting, as in France, from success
with both local customers and tourists in most European countries.
The reduction of discount rate continued and reached -5pp vs. 2021
YTD.
In APAC, 9-month sales (€176m)
were down -13% on a reported basis and -20% on an organic basis vs
2021. Performance continued to be impacted by Covid resurgences in
Mainland China with sporadic store closures and reduced footfall.
However, the APAC trend is of gradual improvement and the gap vs
2021 reduced significantly in Q3 compared to H1 (-12% organic vs Q3
2021). APAC excluding China delivered a good progression vs 2021 in
Q3, supported by the strong performances of Korea, Singapore,
Malaysia and Australia.
In North America, despite a
high comparison basis, SMCP delivered a strong performance with
9-month sales of €132m, +36% on a reported basis and +22% on an
organic basis vs 2021 (LFL progressing double-digits: +23% in a
nearly stable network). The third quarter trend (+30% on a reported
basis and +12% on an organic basis vs 2021) is close to the Q2
trend, sustained by both B&M and Digital. All markets (USA,
Canada and Mexico) recorded an excellent momentum. The reduction of
discount rate continued and reached -8pp vs. 2021 YTD.
Q3
HIGHLIGHTS
During the third quarter, SMCP intensified its
CSR commitments. For example, the number of traceable references in
the Fall-Winter collection now exceeds 100 per brand. Initiatives
in favor of the circular economy are increasing, including in
particular the gradual deployment of second-hand products, which
will be extended to other countries in the coming months.
The Group has made several targeted openings in
its key markets, and the third quarter saw the opening of a major
flagship store for Sandro on the mythical Champs-Elysées Avenue.
More generally, SMCP is pursuing its strategy of qualitative and
selective network development: opening and renovation of Fursac
stores in Europe, new physical and digital points of sale in Asia
for Sandro, Maje and Claudie Pierlot, and strengthening of
strategic retail partners networks (e.g. in the Middle East).
Finally, each brand continued to develop the
desirability of its collections and communications: the Believe
campaign for Sandro and Taylor Hill for Maje, the reaffirmation of
the Parisian style for Claudie Pierlot through iconic pieces in the
Fall-Winter collection and communication campaign, and artistic and
know-how-based collaborations for Fursac.
CONCLUSION
Thanks to the desirability of its brands and the
attractiveness of its collections, Group sales benefited from a
strong momentum across all geographies except Mainland China, due
to Covid-related restrictions.
All brands of the portfolio contributed to the
growth, enabling SMCP to book a record level of sales, despite an
unprecedented level of macro-economic and geopolitical
uncertainty.
PERSPECTIVES
In the fourth quarter 2022, the Group will
continue to carefully monitor the evolution of the economic,
geopolitical, health and social context.
Based on the strong performance on a 9-month
basis and provided the international situation does not deteriorate
further during the rest of the year, SMCP confirms its 2022
full-year financial guidance.
A conference call with
investors and analysts will be held today by CEO Isabelle Guichot
and CFO Patricia Huyghues Despointes, from 9:00 a.m. (Paris
time).
Related slides will
also be available on the website (www.smcp.com), in the Finance
section.
APPENDICES
Breakdown of DOS
Number of DOS |
Q3-21 |
2021 |
H1-22 |
Q3-22 |
|
Var Q3 22 vs. H1
22 |
Var Q3 22 vs. FY
21 |
Var Q3 22 vs. Q3
21 |
|
|
|
|
|
|
|
|
|
By region |
|
|
|
|
|
|
|
|
France |
474 |
472 |
462 |
455 |
|
-7 |
-17 |
-19 |
EMEA |
404 |
402 |
394 |
392 |
|
-2 |
-10 |
-12 |
Americas |
168 |
166 |
167 |
167 |
|
- |
+1 |
-1 |
APAC |
250 |
252 |
251 |
258 |
|
+7 |
+6 |
+8 |
|
|
|
|
|
|
|
|
|
By
brand |
|
|
|
|
|
|
|
|
Sandro |
552 |
552 |
546 |
547 |
|
+1 |
-5 |
-5 |
Maje |
456 |
455 |
453 |
453 |
|
- |
-2 |
-3 |
Claudie
Pierlot |
211 |
211 |
206 |
203 |
|
-3 |
-8 |
-8 |
Suite 341 |
11 |
10 |
2 |
2 |
|
- |
-8 |
-9 |
Fursac |
66 |
64 |
67 |
67 |
|
- |
+3 |
+1 |
Total DOS |
1,296 |
1,292 |
1,274 |
1,272 |
|
-2 |
-20 |
-24 |
Breakdown of POS
Number of POS |
Q3-21 |
2021 |
H1-22 |
Q3-22 |
|
Var Q3 22 vs. H1
22 |
Var Q3 22 vs. FY
21 |
Var Q3 22 vs. Q3
21 |
|
|
|
|
|
|
|
|
|
By region |
|
|
|
|
|
|
|
|
France |
475 |
473 |
463 |
456 |
|
-7 |
-17 |
-19 |
EMEA |
551 |
548 |
542 |
544 |
|
+2 |
-4 |
+7 |
Americas |
197 |
195 |
195 |
198 |
|
+3 |
+3 |
+1 |
APAC |
461 |
468 |
470 |
472 |
|
+2 |
+4 |
+11 |
|
|
|
|
|
|
|
|
|
By
brand |
|
|
|
|
|
|
|
|
Sandro |
743 |
745 |
742 |
745 |
|
+3 |
- |
+2 |
Maje |
618 |
620 |
620 |
620 |
|
- |
- |
+2 |
Claudie
Pierlot |
246 |
245 |
239 |
236 |
|
-3 |
-9 |
-10 |
Suite 341 |
11 |
10 |
2 |
2 |
|
- |
-8 |
-9 |
Fursac |
66 |
64 |
67 |
67 |
|
- |
+3 |
+1 |
Total POS |
1,684 |
1,684 |
1,670 |
1,670 |
|
- |
-14 |
-14 |
o/w Partners
POS |
388 |
392 |
396 |
398 |
|
+2 |
+6 |
+10 |
FINANCIAL INDICATORS NOT DEFINED IN
IFRS
Number of points of sale
(POS)
The number of the Group’s points of sale
comprises total retail points of sale open at the relevant date,
which includes (i) directly operated stores (DOS), including
free-standing stores, concessions in department stores,
affiliate-operated stores, outlets and online stores, and (ii)
partnered retail points of sale.
Organic sales growth
Organic sales growth is the total sales in a
given period compared to the same period in the previous year. It
is expressed as a percentage change between the two periods and is
presented at constant rates (sales for period N and period N-1 in
foreign currencies are converted at the average rate for year N-1)
and excluding the effects of changes in the scope of
consolidation.
Like-for-like sales growth
Like-for-like sales growth corresponds to retail
sales from directly operated points of sale on a like-for-like
basis in a given period compared with the same period in the
previous year. Like-for-like points of sale for a given period
include all of the Group’s points of sale that were open at the
beginning of the previous period and exclude points of sale closed
during the period, including points of sale closed for renovation
for more than one month, as well as points of sale that changed
their activity (for example, Sandro points of sale changing from
Sandro Femme to Sandro Homme or to a mixed Sandro Femme and Sandro
Homme store). Like-for-like sales growth percentage is presented at
constant exchange rates.
***
METHODOLOGY NOTE
Unless otherwise indicated, amounts are
expressed in millions of euros. In general, figures presented in
this press release are rounded to the nearest full unit. As a
result, the sum of rounded amounts may show non-material
differences with the total as reported. Note that ratios and
differences are calculated based on underlying amounts and not
based on rounded amounts.
***
DISCLAIMER: FORWARD-LOOKING STATEMENTS
Certain information contained in this document
includes projections and forecasts. These projections and forecasts
are based on SMCP management's current views and assumptions. Such
forward-looking statements are not guarantees of future performance
of the Group. Actual results or performances may differ materially
from those in such projections and forecasts as a result of
numerous factors, risks and uncertainties. These risks and
uncertainties include those discussed or identified under Chapter 3
“Risk factors and internal control” of the Company’s Universal
Registration Document filed with the French Financial Markets
Authority (Autorité des Marchés Financiers - AMF) on 19 April 2022
and available on SMCP's website (www.smcp.com).This document has
not been independently verified. SMCP makes no representation or
undertaking as to the accuracy or completeness of such information.
None of the SMCP or any of its affiliate’s representatives shall
bear any liability (in negligence or otherwise) for any loss
arising from any use of this document or its contents or otherwise
arising in connection with this document.
ABOUT SMCP
SMCP is a global leader in the accessible luxury
market with four unique Parisian brands: Sandro, Maje, Claudie
Pierlot and Fursac. Present in 45 countries, the Group comprises a
network of over 1,600 stores globally and a strong digital presence
in all its key markets. Evelyne Chetrite and Judith Milgrom founded
Sandro and Maje in Paris, in 1984 and 1998 respectively, and
continue to provide creative direction for the brands. Claudie
Pierlot and Fursac were respectively acquired by SMCP in 2009 and
2019. SMCP is listed on the Euronext Paris regulated market
(compartment A, ISIN Code FR0013214145, ticker: SMCP).
CONTACTS
|
|
INVESTORS/PRESS
|
|
|
|
SMCP
|
BRUNSWICK |
Amélie
Dernis |
Hugues Boëton |
|
Tristan Roquet Montegon |
+33 (0) 1 55 80 51
00 |
+33 (0) 1 53 96 83 83 |
amelie.dernis@smcp.com |
smcp@brunswickgroup.com |
1 Claudie Pierlot and Fursac brands
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