SMCP Q4 update sees sales figure scaled back, but revenue still rising

SMCP has issued a brief Q4 update and sales that its “sales remained stable compared to 2022 at constant exchange rates, despite a macroeconomic context that continued to deteriorate”.

Even though the owner of Sandro, Maje, Claudie Pierlot and Fursac saw “heightened geopolitical tensions, weak household consumption and persistent inflation, the good resilience of the group in the United States offset a difficult month of December in Europe (particularly in France) and a less dynamic month than expected in China”.

Despite the headwinds, it decided to maintain “a very strict discount policy” and with all that in mind it expects “a performance slightly below” its previous announcement.

That means sales around €1.23 billion, or  growth at constant FX of 3.8% year on year. It was previously forecasting “mid-single-digit growth”.

The adjusted EBIT margin should be between 6.4% and 6.6% of sales rather than the previous expectation of 7% to 9% of sales. 

The group has also accelerated its savings plan and “continued to make financial strength a priority”. As a result, its year-end net debt has fallen and its stock levels have been reduced. 

It will issue its full-year results on 28 February and said it will share further details about 2023’s annual performance and the continuation of the savings plan for 2024.