In 2019, consolidated sales at SMCP, parent company of the Sandro, Maje and Claudie Pierlot brands, reached 1,131.9 million euros (1,245.7 million dollars), up 8.7 percent at constant currency and scope. The company said, reported sales were up 11.3 percent, including a positive currency impact of 1.3 percent and De Fursac’s contribution of 1.2 percent since September 2019 and reflected a stable, negative 0.1 percent like-for-like sales growth, with a sequential acceleration in H2 2019 of 0.8 percent, as well as a continued expansion of the stores network. In the fourth quarter, the company’s consolidated sales reached 317 million euros (348.8 million dollars), up 9.6 percent at constant currency, while reported sales were up 14.8 percent, including a positive currency impact of 1.2 percent and De Fursac’s contribution of 3.9 percent. For 2019, SMCP confirms its adjusted EBITDA margin guidance of between 15.5 percent and 16 percent.
Commenting on the report, Daniel Lalonde, SMCP’s CEO, stated in a statement: “In 2019, thanks to the strength of our brands, teams and business model, we delivered a robust growth despite increasingly tough market conditions particularly in the Parisian region and in Hong Kong. While Sandro and Maje delivered another strong year with double-digit growth, Claudie Pierlot has been transitioning to become a global brand. We confirm our full-year 2019 guidance on adjusted EBITDA margin.
SMCP expands retail presence in APAC, EMEA and the Americas
Over the last twelve months, SMCP net openings amounted to over 90 directly operated stores including 41 net openings in APAC, 45 in EMEA and 14 in the Americas. Meanwhile, in France, where the group has pursued the optimization of its network with 10 net closings of directly operated stores, SMCP continued to invest in new qualitative locations such as Sandro-Strasbourg or Maje-rue Soufflot in Paris. In Q4 2019, SMCP opened 27 directly operated stores globally.
The company added that 2019 also showed some progress in digital, as online sales now represent 14.9 percent of the Group’s revenue, up 20 bps against last year. Accessories too showed a strong increase of 18.4 percent mainly driven by Maje and Claudie Pierlot.
In France, SMCP’s sales were up 0.5 percent at ccs. in a continuously challenging environment. The company said, following a solid performance in October and November, December was impacted by social movements that weighed on traffic in stores. Meanwhile, SMCP pursued its network optimization plan with 3 net closings over the quarter. In EMEA, sales growth stood at 9.4 percent at ccs., driven by key countries such as Spain, Germany and Italy. In parallel, the UK, SMCP added, first contributor in the region, showed a flat performance in a tough and volatile market, impacted by Brexit related uncertainties.
In the Americas, the Group registered 6.2 percent sales growth at ccs. considering the high basis of comparison of 25.7 percent at ccs. in Q4 2018. This performance has been achieved through a double-digit retail sales growth, while partner’s sales decreased due to the closure of nine corners in the third quarter of 2019. In APAC, the group sales rose 29.1 percent at ccs. despite the continued deterioration of the market in Hong-Kong, driven by strong performance in mainland China. Excluding off-price sales, mainland China recorded 30 percent of sales growth at ccs.
Sandro and Maje brands continue to record positive sales
The company further said that sales at Sandro increased 10.9 percent at ccs and Maje reported 12.5 percent rise at ccs. in Q4 2019, driven by strong FW19 collections. Maje performance reflected strong results of its collection in Europe and APAC as well as a gifting strategy for the end of the year. Sandro showed a strong sales’ performance in the US and an acceleration of Sandro men in Europe. However, sales at Claudie Pierlot brand declined 4.3 percent at ccs. impacted by its transition to become a global brand.
Over the last twelve months, Sandro opened 47 DOS, including a dual gender store at The Grove in Los Angeles, the relocation of a dual gender store in Strasbourg (France) and a store in Mix C Hefei in Q4 2019. Maje pursued its development with 35 DOS net openings, including stores at Fashion Valley in San Diego, One ITC in Shanghai and the store relocation Rue Soufflot, in Paris, in Q4 2019. Finally, Claudie Pierlot recorded 11 DOS net openings and increased its international footprint with 7 DOS in APAC.