Following a series of financial moves, the contemporary Paris fashion company now has “additional financial flexibility to pursue the execution of its strategy and to seize future growth opportunities in order to consolidate its position as a global leader in accessible luxury,” it said. The restructuring resulted in an extension of the maturity of its debts and reduced average financing costs by around 200 basis points to 2.6 percent.
In a separate, e-mailed statement in response to a question from WWD, the company said it now has a “sustainable” debt structure that will help it manage variations in working capital requirements as well as finance projects such as speeding up expansion in China, pushing deeper into new markets like Japan and even adding “small acquisitions” to “complete” its brand portfolio. The company attributed the statement to Philippe Gautier, SMCP chief financial officer and director of operations.
The French company is controlled by Chinese textile conglomerate Shandong Ruyi Group and was listed on the Paris stock market in 2017, generating funds to fuel the expansion of its fashion labels around the world. Growth has been especially fast in China, where SMCP counts more than 100 stores after opening its first one in Shanghai in 2013.
SMCP’s contemporary labels are also making a push into the U.S. and Mexico and, last fall, Maje opened its fifth Manhattan store in Rockefeller Center.