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SMCP reports 14.1 percent rise in Q4 sales, confirms outlook

By Prachi Singh

Jan 31, 2018


SMCP, owner of Sandro, Maje and Claudie Pierlot, reported 16 percent or 17.5 percent sales growth to 912 million euros (1,135 million euros) in FY 2017. In the fourth quarter, sales increased 14.1 percent to 256 million euros (318 million dollars), which the company said was driven by a very dynamic performance over the holiday season and despite tough market conditions in October. Exchange rates had a similar impact in Q4 than in the previous quarter and growth at constant currency reached 16.8 percent. Digital sales were up 46 percent and reached 12 percent of total sales.

Commenting on the company’s performance, Daniel Lalonde, SMCP’s Chief Executive Officer, said in a media statement: “SMCP has once again posted a fantastic year in terms of net sales and strategic network expansion across all regions and brands. We have opened doors in prestigious locations, set foot in new territories, further developed our omnichannel services, launched new ecommerce sites and have kept offering amazing collections throughout the year. We have exceeded our yearly growth objective and we confirm our full-year 2017 guidance on EBITDA margin.”

SMCP continues to expand global retail footprint

Over the last three months, SMCP said that the company continued to pursue its international expansion with 37 net POS including openings such as K11 in Shanghai for both Sandro and Maje, a free-standing store in Milan for Claudie Pierlot, Maje at the Venetian in Macau as well as Sandro and Maje in the upgraded Century City, LA.

In October, the company also unveiled its Sandro and Maje eyewear collections at the Silmo eyewear show. The fourth quarter also saw further development of omni-channel services, including the full roll out of store-to-web for Maje in France.

SMCP markets and brands perform positively in FY17

In FY17, the company added that growth in APAC was outstanding at 40 percent. Greater China drove the point of sales growth with 37 net openings out of the 50 across the region. 2017 saw the opening of five new cities in Mainland China: Wuhan, Xian, Kunming, Harbin and Jinan - bringing the total to 21, where the group is present in Greater China - as well as the launch of Taiwan as a direct market. Sandro and Maje also opened their direct e-commerce sites in China.

In EMEA, the group posted 24 percent sales growth. SMCP continued its footprint expansion with 48 net openings in 2017, mostly in Italy and Germany. In Americas, SMCP sales increased 18 percent in 2017, across all channels with 15 net new openings in 2017. In France, growth was 3 percent in 2017.

The company also reported double digit growth across all brands with Sandro witnessing a 21 percent sales rise. The brand opened 53 new stores in 2017 included the opening of European doors. Maje recorded a 10 percent growth with a continued success of accessories and more specifically the leather goods. Maje’s sustained its footprint expansion with 39 new openings supported by new stores in Greater China. Claudie Pierlot’s sales growth was 16 percent in 2017 driven by the increasing brand awareness in EMEA, where the brand launched two new direct markets this year including Italy and Luxemburg. The brand expanded its footprint with 21 net openings in 2017.

The group has confirmed its 2017 full year guidance on EBITDA margin of 16.5 percent as well as on capex and net leverage. At the end of 2017, SMCP brands are present in more than 1,300 points of sales in 38 countries.

Picture:Claudie Pierlot website