Sandro RTW Fall 2021

PARIS — SMCP, the group behind contemporary French labels including Sandro, Maje and Claudie Pierlot, said sales fell 2.1 percent in the first quarter as a strong performance in China failed to compensate for weakness in Europe.

Revenues totaled 223.9 million euros in the three months to March 31, representing a decline of 0.6 percent in organic terms, the company reported on Tuesday. SMCP said 45 percent of its store network worldwide remains temporarily closed due to the coronavirus pandemic.

Organic revenues jumped 64.6 percent in the APAC region, driven by a 92.6 percent increase in mainland China. Conversely, like-for-like sales were down 32.5 percent in the EMEA region and 8.3 percent in France, hit by continued lockdown measures, store closures and restrictions, and a lack of tourism.

Daniel Lalonde, chief executive officer of SMCP, noted there were early signs of rebound in demand in the U.S. Organic revenues in the Americas were up 0.4 percent in the first quarter.

“The perspective of a gradual market reopening in Europe gives us a good reason to be cautiously optimistic about [the second half of] 2021, not only in Europe, but in all markets,” he said in a statement. However, the company declined to provide full-year guidance, citing the high level of uncertainty. 

Digital sales grew 38.9 percent in the first three months of the year, boosted by several initiatives from the group’s One Journey strategic plan presented in October 2020. As planned, SMCP closed 33 points of sales during the first quarter, mainly small boutiques in France.

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