SMCP - 2020 Q3 Sales
2020 third quarter Press release
- Paris, October 26, 2020
2020 Q3 salesSequential
improvement driven by Mainland China
- Q3 sales down -9.5% as reported; -10.6% on an organic1
basis
- Mainland China sales back to double-digit like-for-like sales
growth in Q3 (+29.6% on an organic basis)
- Strong performance in e-commerce, driven by all regions (+27.6%
of digital sales growth2)
- Selective expansion: +6 net openings of DOS in Q3 2020, o/w 4
net closures in France
Commenting on the report, Daniel
Lalonde, SMCP’s CEO, stated: “Our third quarter
performance is very encouraging. I am particularly satisfied with
our figures in Mainland China, which is undoubtedly a key driver of
our future growth. However, as visibility remains limited due to
the intensification of the Covid-19 pandemic worldwide, we remain
cautious about the coming quarters. Nevertheless, I remain
confident in the strength of our fundamentals and our ability to
get through this crisis. I look forward to presenting to you our
new strategy tomorrow which will enable us to meet future
challenges and take advantage of the trends we observe around the
world.”
€m except
%Unaudited figures |
Q3 2019 |
Q3 2020 |
Organic sales change |
Reported sales change |
9M 2019 |
9M 2020 |
Organic sales change |
Reported sales change |
Sales by
region |
|
|
|
|
France |
91.8 |
89.5 |
-8.3% |
-2.6% |
275.4 |
222.5 |
-25.4% |
-19.2% |
EMEA3 |
87.5 |
69.8 |
-20.6% |
-20.1% |
246.3 |
176.5 |
-28.9% |
-28.3% |
Americas |
36.0 |
23.4 |
-32.2% |
-35.1% |
104.8 |
61.6 |
-41.0% |
-41.2% |
APAC4 |
59.2 |
65.7 |
13.8% |
10.9% |
188.5 |
160.6 |
-13.8% |
-14.8% |
Sales by Brand |
|
|
|
|
Sandro |
133.4 |
116.2 |
-11.8% |
-12.9% |
395.8 |
293.3 |
-25.7% |
-25.9% |
Maje |
108.3 |
98.8 |
-7.7% |
-8.8% |
320.6 |
238.3 |
-25.5% |
-25.7% |
Other brands5 |
32.9 |
33.4 |
-15.4% |
1.5% |
98.5 |
89.6 |
-27.1% |
-8.9% |
TOTAL |
274.5 |
248.4 |
-10.6% |
-9.5% |
814.9 |
621.2 |
-25.8% |
-23.8% |
In the third quarter of 2020, consolidated sales
reached €248.4 million, down -10.6% on an organic basis. Reported
sales were down -9.5%, including a negative currency impact of
-1.0% (mostly in Americas and APAC) while De Fursac’s contributed
positively at +2.0%. This performance showed a sequential sales
improvement compared to Q2 2020. Over the quarter, while traffic in
stores remained weak due to the persistent absence of tourism, the
Group recorded solid conversion rates. Furthermore, SMCP partially
offset the impact of the crisis through a strong performance in
e-commerce6 (+27.6% of sales growth).
Over the last twelve months, SMCP net openings
amounted to +38 directly operated stores (of which +6 net
openings in Q3 2020). This includes +20 net openings in APAC, +17
in EMEA and +11 in Americas. Meanwhile, the Group has pursued the
optimization of its network in France (-10 DOS).
Sales
breakdown by region and by brand
In France, sales were down
-8.3% on an organic basis, showing a strong sales improvement
versus Q2 2020. Over the quarter, the solid resilience of domestic
customers (particularly outside Paris) partially offset the
persistent impact of the crisis on tourism. In August, the Group
recorded a good performance supported by positive calendar effects
related to the summer sales which were postponed by three weeks
compared to 2019. In the meantime, e-commerce continued to show a
strong double-digit sales growth4. Over the quarter, the Group
pursued its optimization plan with -4 net additional closures.
In Europe, sales were down
-20.6% on an organic basis. Nevertheless, the Group’s performance
improved versus Q2 2020 even though it continued to show relatively
contrasted trends. While Germany, Northern Europe and Russia,
showed good resilience, Italy, the UK and Spain remained the most
impacted markets. In parallel, the Group recorded a strong
double-digit sales growth in e-commerce4. Over the quarter, SMCP
recorded -1 net closure due to -5 closures in Switzerland linked to
the footprint’s reduction of a department store.
In the Americas, sales were
down -32.2% on an organic basis. Despite a net sequential
improvement throughout the quarter and compared to Q2 2020, North
America remained the most affected region by the heath crisis as
SMCP is mainly positioned in the area of New York, Florida and
California which have been the most impacted. Meanwhile, e-commerce
displayed a double-digit sales growth7.
In APAC, sales were up +13.8%
on an organic basis, showing a consistent improvement throughout
the quarter. This performance was mainly driven by mainland
China (+29.6% of organic growth including a double-digit
like-for-like sales growth) fuelled by both Brick & Mortar and
Digital. E-commerce generated a strong double-digit sales growth in
Q3 2020, driven by successful operations on T-Mall. In the
rest of Asia, SMCP recorded contrasted trends with strong
growth in South Korea and Taiwan while in Hong-Kong, Macau, and
Singapore, market conditions improved but remained challenging.
A webcast to investors
and analysts will be held tomorrow by SMCP from 9.00 am to approx.
12:30 pm (Paris time). The management will provide an update on
SMCP’s strategy and next steps as well as a quick overview on Q3
2020.
Related slides will be
available on the website (www.smcp.com), in the Finance
section.
FINANCIAL
CALENDAR
·Oct 27,
2020 – Strategic update
APPENDICES
Breakdown of DOS
Number of DOS |
Q3-19 (incl. DF) |
2019 (incl. DF) |
H1-20 (incl. DF) |
Q3-20 (incl. DF) |
|
Var Q3 20 vs. Q2 20 (incl. DF) |
Var Q3 20 vs. FY 19 (incl. DF) |
Var Q3 20 vs. Q3 19 (incl. DF) |
|
|
|
|
|
|
|
|
|
By
region |
|
|
|
|
|
|
|
|
France |
530 |
528 |
524 |
520 |
|
-4 |
-8 |
-10 |
EMEA |
397 |
413 |
415 |
414 |
|
-1 |
+1 |
+17 |
Americas |
156 |
162 |
164 |
167 |
|
+3 |
+5 |
+11 |
APAC |
209 |
219 |
221 |
229 |
|
+8 |
+10 |
+20 |
|
|
|
|
|
|
|
|
|
By
brand |
|
|
|
|
|
|
|
|
Sandro |
536 |
550 |
555 |
559 |
|
+4 |
+9 |
+23 |
Maje |
435 |
444 |
448 |
451 |
|
+3 |
+7 |
+16 |
Claudie
Pierlot |
220 |
224 |
223 |
219 |
|
-4 |
-5 |
-1 |
Suite 341 |
44 |
44 |
38 |
38 |
|
- |
-6 |
-6 |
De Fursac |
57 |
60 |
60 |
63 |
|
+3 |
+3 |
+6 |
Total DOS |
1 292 |
1 322 |
1 324 |
1 330 |
|
+6 |
+8 |
+38 |
Breakdown of POS
Number of POS |
Q3-19 (incl. DF) |
2019 (incl. DF) |
H1-20 (incl. DF) |
Q3-20 (incl. DF) |
|
Var Q3 20 vs. Q2 20 (incl. DF) |
Var Q3 20 vs. FY 19 (incl. DF) |
Var Q3 20 vs. Q3 19 (incl. DF) |
|
|
|
|
|
|
|
|
|
By
region |
|
|
|
|
|
|
|
|
France |
532 |
530 |
524 |
520 |
|
-4 |
-10 |
-12 |
EMEA |
518 |
535 |
534 |
531 |
|
-3 |
-4 |
+13 |
Americas |
182 |
189 |
193 |
187 |
|
-6 |
-2 |
+5 |
APAC |
374 |
386 |
399 |
406 |
|
+7 |
+20 |
+32 |
|
|
|
|
|
|
|
|
|
By
brand |
|
|
|
|
|
|
|
|
Sandro |
690 |
707 |
716 |
714 |
|
-2 |
+7 |
+24 |
Maje |
567 |
577 |
587 |
584 |
|
-3 |
+7 |
+17 |
Claudie
Pierlot |
246 |
250 |
249 |
245 |
|
-4 |
-5 |
-1 |
Suite 341 |
44 |
44 |
38 |
38 |
|
- |
-6 |
-6 |
De Fursac |
59 |
62 |
60 |
63 |
|
+3 |
+1 |
+4 |
Total POS |
1 606 |
1 640 |
1 650 |
1 644 |
|
-6 |
+4 |
+38 |
o/w Partners POS |
314 |
318 |
326 |
314 |
|
-12 |
-4 |
- |
FINANCIAL
INDICATORS NOT DEFINED IN IFRS
The Group uses certain key financial and
non-financial measures to analyse the performance of its business.
The principal performance indicators used include the number of its
points of sale, like-for-like sales growth, Adjusted EBIT and
Adjusted EBIT margin.
Number of points of sale
The number of the Group’s points of sale
comprises total retail points of sale open at the relevant date,
which includes (i) directly-operated stores, including
free-standing stores, concessions in department stores,
affiliate-operated stores, factory outlets and online stores, and
(ii) partnered retail points of sale.
Like-for-like sales growth
Like-for-like sales growth corresponds to retail
sales from directly operated points of sale on a like-for-like
basis in a given period compared with the same period in the
previous year, expressed as a percentage change between the two
periods. Like-for-like points of sale for a given period include
all of the Group’s points of sale that were open at the beginning
of the previous period and exclude points of sale closed during the
period, including points of sale closed for renovation for more
than one month, as well as points of sale that changed their
activity (for example, Sandro points of sale changing from Sandro
Femme to Sandro Homme or to a mixed Sandro Femme and Sandro Homme
store). Like-for-like sales growth percentage is presented at
constant exchange rates (sales for year N and year N-1 in foreign
currencies are converted at the average N-1 rate, as presented in
the annexes to the Group's consolidated financial statements as of
December 31 for the year N in question).
Organic sales growth
Organic sales growth corresponds to total sales
in a given period compared with the same period in the previous
year, expressed as a percentage change between the two periods, and
presented at constant exchange rates (sales for period N and period
N-1 in foreign currencies are converted at the average year N-1
rate) excluding scope effects, i.e. excluding the acquisition of De
Fursac
***
METHODOLOGY NOTE
Unless otherwise indicated, amounts are
expressed in millions of euros and rounded to the nearest million.
In general, figures presented in this press release are rounded to
the nearest full unit. As a result, the sum of rounded amounts may
show non-material differences with the total as reported. Note that
ratios and differences are calculated based on underlying amounts
and not on the basis of rounded amounts.
***
DISCLAIMER: FORWARD-LOOKING
STATEMENTS
Certain information contained in this document
includes projections and forecasts. These projections and forecasts
are based on SMCP management's current views and assumptions. Such
forward-looking statements are not guarantees of future performance
of the Group. Actual results or performances may differ materially
from those in such projections and forecasts as a result of
numerous factors, risks and uncertainties. These risks and
uncertainties include those discussed or identified under Chapter 3
“Risk factors” of the Company’s Universal Registration Document
filed with the French Financial Markets Authority (Autorité des
Marchés Financiers - AMF) on 30 April 2020 and available on SMCP's
website (www.smcp.com).This document has not been independently
verified. SMCP makes no representation or undertaking as to the
accuracy or completeness of such information. None of the SMCP or
any of its affiliate’s representatives shall bear any liability (in
negligence or otherwise) for any loss arising from any use of this
document or its contents or otherwise arising in connection with
this document.
***
ABOUT SMCP
SMCP is a global leader in the accessible luxury
market with four unique Parisian brands: Sandro, Maje, Claudie
Pierlot and De Fursac. Present in 41 countries, SMCP is a
fast-growing company which reached the milestone of €1bn in sales
in 2018. The Group comprises a network of over 1,500 stores
globally plus a strong digital presence in all its key markets.
Evelyne Chetrite and Judith Milgrom founded Sandro and Maje in
Paris, in 1984 and 1998 respectively, and continue to provide
creative direction for the brands. Claudie Pierlot and De Fursac
were respectively acquired by SMCP in 2009 and 2019. SMCP is listed
on the Euronext Paris regulated market (compartment A, ISIN Code
FR0013214145, ticker: SMCP).
CONTACTS
INVESTORS/PRESS
PRESS
SMCP
BRUNSWICK
Célia d’Everlange
Hugues
Boëton
Tristan Roquet Montegon
+33 (0) 1 55 80 51 00
+33 (0) 1 53 96 83
83
celia.deverlange@smcp.com
smcp@brunswickgroup.com
1 All references in this document to the organic sales
performance refer to the performance of the Group at constant
currency and scope, i.e. excluding the acquisition of De Fursac
2 Excluding De Fursac
3 EMEA covers the Group's activities in European countries
excluding France (mainly the United Kingdom, Spain, Germany,
Switzerland, Italy and Russia) as well as the Middle East
(including the United Arab Emirates).
4 APAC includes the Group's Asia-Pacific operations (mainly
Mainland China, Hong Kong, South Korea, Singapore, Thailand and
Australia).
5 Claudie Pierlot and De Fursac brands
6 Excluding De Fursac
7 With new accounting method on returns
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