first-half sales up but profits down

French fashion group SMCP, owner of Sandro, Maje, Claudie Pierlot and Fursac announced on Thursday sales of €610 million for its first half of 2023, up 9% at constant exchange rates and 5% on a like-for-like basis, compared with the same period last year.

On the other hand, the French group saw its net profit fall by 32.1% in the first half of 2023. From January to June, net profit stood at €14 million, compared with €20.7 million for the same period in 2022, with “inflation and liquidation operations on past collections” dragging down operating profit, according to a Group press release.

On the good news front, after a good start to the year, momentum remained positive for the group in the second quarter. Its sales rose from €228.2 million over the same period last year to €305 million in 2023. The increase in sales was driven by the Asia-Pacific region, with a 40.4% rise to 65.5 million euros in the second quarter due to “a return to growth in the Chinese market and a good performance in the rest of the region,” according to the Group.

The Europe (excluding France), Middle East and Africa region posted sales of €100.6 million in the second quarter (+11.6%). In France, however, where the Group has 464 sales outlets, sales were down by 3% at 98 million euros.

“After two years of very strong growth, the Americas saw a slight decline,” with sales down by 4.8%, according to SMCP.

Over the quarter, Sandro posted sales of €149.5 million (+13.4% on an organic basis) and Maje €114.6 million (+3.4%), while Claudie Pierlot and Fursac brought in €41.1 million (+8.2%).

Isabelle Guichot, CEO of SMCP, was quoted in the press release as saying that “the Group recorded good momentum over the half-year,” and that she was “confident in our ability to achieve our targets for 2023 as a whole.”

“The second half of the year, which is usually more profitable than the first, will also benefit from the normalisation of the situation in Greater China (which includes Hong Kong and Macao, editor’s note)” and “a more homogeneous performance by brand, particularly at Maje, the group’s most profitable brand,” the press release added.

With AFP