PARIS — SMCP, the group behind accessible luxury labels Sandro, Maje, Claudie Pierlot and De Fursac, reported a profit of 600,000 euros, which was up 89 million euros in the first half of 2021 versus the same prior-year period.
“We delivered a solid performance in H1 2021 in all regions, particularly in APAC and in the U.S., where our sales exceeded or were back to their pre-pandemic levels,” said Daniel Lalonde, the outgoing chief of SMCP, in a statement released Friday morning.
As previously reported, Isabelle Guichot was named chief executive officer of SMCP in August. Lalonde, who resigned from the group, will remain there through October to ensure a smooth transition.
SMCP’s adjusted earnings before interest and taxes were back in the black at 25.2 million euros, representing a 54.9 million-euro gain, thanks to ongoing cost-cutting measures. Adjusted EBITDA grew 81.9 percent to 100.3 million euros.
SMCP sales in the six months ended June 30 advanced 21.6 percent on a reported basis and 23.3 percent on an organic basis to 453.3 million euros, spurred by business around the world.
Sales in Mainland China posted double-digit gains — up 54.6 percent on an organic basis versus the first half of 2020 and up 24 percent against the first half of 2019.
“We have very strong comps in Q3 2020 in China, and there are a few uncertainties about some COVID-19 resurgences and weather factors, but despite all these external elements, we remain very confident in the Chinese market,” said Guichot during a call with journalists on Friday.
SMCP’s business in the U.S. is going from strength to strength monthly, said Lalonde.
The group’s discount rate was improved by 4 points in both brick-and-mortar and digital in the half.
“A big part of our strategy is to sell more at full price,” explained Lalonde. “We’re well on our way to achieving this objective.”
SMCP’s cash position at the end of June stood at more than 240 million euros.
When asked about French prosecutors’ inquiry opened earlier this year into SMCP, among other fashion and shoe companies, about alleged sourcing of products made with forced labor from the Uyghur region of China, Guichot said there is no update to give at present.
“We keep on denying very strongly those accusations and will fully cooperate with the investigation,” she said, adding SMCP has never sourced from the Xinjiang region. “All our suppliers have signed a code of conduct. We conduct regular audits of our supply chain.”
SMCP was listed on the Paris Stock Exchange in 2017. Chinese textile group Ruyi Group owns around 54 percent of the company.
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