PARIS — SMCP’s sales continued to improve through the fourth quarter, and the accessible luxury player has reported full-year sales of 1.04 billion euros, an increase of 19 percent year-over-year. On an organic basis, sales were up 18.7 percent on 2020, although they were still down 9.7 percent compared with 2019.
“Throughout the year, our performance has continued to improve despite numerous constraints related to COVID-19 resurgences around the world,” said SMCP chief executive officer Isabelle Guichot, who joined the company last year.
The owner of accessible luxury brands Sandro, Maje, Claudie Pierlot and De Fursac said its fourth-quarter sales were “almost on par” with the same period of 2019, declining 0.2 percent on an organic basis compared with the final quarter of 2019.
On a reported basis, the company’s fourth-quarter sales increased 24.5 percent compared with the prior-year period, to 313.5 million euros.
As part of its One Journey strategic plan, SMCP made significant progress in its drive to increase the weight of full-price sales during the year, reducing its rate of discounting by 5.6 percentage points.
Some 42 stores net were closed down during the year — mainly in France — whereas it continued to expand its brick-and-mortar footprint in Asia, especially China. Digital represented 23 percent of the French firm’s revenues in 2021, compared with 26 percent in 2020 and 15 percent in 2019.
Organic sales gains were driven by Asia Pacific, especially mainland China, which saw sales up 15.2 percent compared with 2019, and by the Americas, with U.S. revenues up 5.5 percent compared with 2019.
SMCP’s two biggest brands, Sandro and Maje, grew faster than the remainder of the portfolio, with their sales up 20.1 percent and 20.9 percent, respectively, compared with 2020 on a reported basis.
Adjusted earnings before interest, taxes, depreciation and amortization came in at 249.6 million euros, a 39 percent increase year-over-year, driven by sales growth and cost management, the company said. Net income stood at 23.6 million euros, compared with a net loss of 102.2 million euros in 2020.
For 2022, SMCP said it anticipates solid double-digit sales growth compared with 2021 and an increase in the mid-single digits on 2019, before the pandemic hit.
The company has halted deliveries to Russia, it said. Its business in both Russia and Ukraine, which account for less than 1 percent of SMCP’s total revenues, is done through distributors. “The decision to close stores, even temporarily, is not under the group’s control,” it said. It has committed to contributing “a significant amount” to Médecins Sans Frontières’ emergency fund to supply medicines in Ukraine.