SMCP Reports H1 Loss of 88.5 Million Euros, Plans Investor Day – WWD

PARIS —  SMCP, the group behind accessible luxury labels Sandro, Maje, Claudie Pierlot and De Fursac, reported a loss of 88.5 million euros in the first half as consumption was heavily disrupted by the coronavirus crisis. 

Striking a note of optimism, the company said it is positioned to weather the crisis thanks to its geographic balance, e-commerce system and agility.

“The group is well equipped to face this challenging period as its fundamentals remain solid,” SMCP chief executive officer Daniel Lalonde said in a statement. The executive announced plans to update investors Oct. 37 on its efforts to adapt to the changed retail landscape.

The company has been cutting costs, streamlining collections, reining in the fast pace of store expansion that fuelled growth in the past — and helped it widen its international reach beyond France into Asia and the Americas — and plans to focus on sustainability. 

The first half loss compares to a net profit of 17.2 million euros for the same period a year ago. Adjusted earnings before interest tax, amortisation and depreciation was 55.1 million euros, compared to 141 million euros for the same period in 2019.

Sales for the first half were down 31 percent to 372.8 million euros, with declines in all markets over the period when lockdown measures swept across the globe in a bid to stem the spread of COVID-19. The Asia-Pacific region performed better than other markets, with a return to growth in China in June.

SMCP was listed on the Paris Stock Exchange in 2017. Chinese textile group Ruyi Group owns around 54 percent of SMCP.

The company said it has a solid cash position of 219 million euros at the end of June.

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