SMCP to take sales and profit hit in China due to coronavirus outbreak

SMCP to take sales and profit hit in China due to coronavirus outbreak

SMCP, parent company of Sadro, Maje, Claudie Pierlot has announced that the
outbreak of Covid-19 in China is having a material negative effect on
Chinese consumption and in this context, the company’s sales and
profitability are significantly impacted in the country, a key market for
the group and to a lesser extent in the other regions, due to a decrease in
Chinese tourists.

The company said in a statement that while SMCP had been generating a
strong performance during the first three weeks of January in mainland
China, a meaningful part of the group’s stores has been temporarily closed
in mainland China and in Macau since then. In parallel, the remaining
stores are operating with limited opening hours.

Commenting on the development, Daniel Lalonde, CEO of SMCP, stated: “While
we cannot predict the duration of the crisis, we have been taking
appropriate measures to mitigate the impact on our business. Beyond this, I
remain fully confident in our strategy, the strength of our brands and
their potential in China.”

In this context, SMCP has decided to postpone its capital market day,
initially scheduled for April 2, 2020 to September 30, 2020.

Picture:Facebook/Claudie Pierlot


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