SMCP - 2021 Q3 Sales
2021
Third quarterPress release -
Paris, October 27th, 2021
Q3 Sales almost
at par with 2019
levelsSteady and
solid progress on full price strategy
- Q3 2021 Sales
at €271.7m, down -1.0% on a reported basis vs 2019, -3.2% on an
organic1 basis, and up +8.4% on an organic basis vs 2020 (supported
by LFL growth)
- Continued
progressive catch-up versus 2019
- Strong trend
vs 2019 in Mainland China (+15.8% on an organic basis) despite some
Covid resurgences locally impacting mobility and store traffic
- Americas
turning positive vs 2019 and U.S. still outperforming (reaching
+15.2% vs 2019 on an organic basis) thanks to a very high
demand
- France and
EMEA progressively catching up to 2019 level, supported by a strong
local consumption
- Steady and
solid progress on full price strategy (discount rate down by -5.5
pts), and delivery of our network optimization plan
- Normalization
of digital penetration at 24% in 9M due to the complete reopening
of physical stores and our ongoing full price strategy
- SMCP is
confident in its ability to reach one billion euros sales for
2021
Commenting on those
results, Isabelle
Guichot, CEO of
SMCP, stated: “We
delivered a solid performance in Q3 allowing us to post sales close
to their pre-pandemic level of 2019. We are particularly pleased
with our sales trend in the U.S., which continues to outperform
thanks to strong demand. In Mainland China, sales recorded
double-digit growth vs 2019 despite the resurgence of Covid cases
locally. Sales in France and EMEA are also approaching their
pre-crisis level, despite reduced tourism. While our digital sales
share stabilizes with the complete reopening of physical stores and
the decline in liquidation operations, we have made significant
progress on optimizing our network and our full price strategy, in
line with the “One Journey” strategic plan presented last year.
Looking forward, after having observed a positive dynamic across
all markets during the first weeks of October, we are confident in
our capacity to reach 1 billion euros in full-year 2021 sales.”
€m except %
Unaudited figures |
Q3 2020 |
Q3 2021 |
Organic change |
Reported change |
|
9M 2020 |
9M 2021 |
Organic change |
Reported change |
Sales by region |
|
|
|
|
|
France |
89.5 |
88.4 |
-1.2% |
-1.2% |
|
222.5 |
230.3 |
+3.5% |
+3.5% |
EMEA2 |
69.8 |
81.3 |
+15.5% |
+16.4% |
|
176.5 |
195.3 |
+10.5% |
+10.7% |
Americas |
23.4 |
37.8 |
+62.9% |
+61.5% |
|
61.6 |
96.9 |
+65.5% |
+57.2% |
APAC3 |
65.7 |
64.2 |
-5.7% |
-2.2% |
|
160.6 |
202.6 |
+25.6% |
+26.2% |
Sales by Brand |
|
|
|
|
|
Sandro |
116.2 |
131.5 |
+12.0% |
+13.1% |
|
293.3 |
343.5 |
+17.8% |
+17.1% |
Maje |
98.8 |
106.5 |
+6.7% |
+7.8% |
|
238.3 |
289.4 |
+22.2% |
+21.5% |
Other
brands4 |
33.4 |
33.8 |
+0.7% |
+1.2% |
|
89.6 |
92.1 |
+2.7% |
+2.8% |
TOTAL |
248.4 |
271.7 |
+8.4% |
+9.4% |
|
621.2 |
725.0 |
+17.3% |
+16.7% |
2021
THIRD QUARTER
SALES
In the third quarter of 2021, consolidated sales
reached €271.7 million, down -1.0% on a reported basis vs 2019,
-3.2% on an organic basis, and up +8.4% on an organic basis vs
2020, thanks to a strong performance in all regions considering
some local Covid resurgences in APAC, low tourism, and a less
promotional environment.
Reported sales vs 2020 were up +9.4%, including
a positive currency impact of +1.0%.
Over the first 9 months of the year, the Group
generated a digital sales penetration of 24%, normalizing in
percentage of sales due to the full reopening of physical stores,
and the ongoing full price strategy limiting the sales growth.
In line with our “One Journey” strategic plan,
we made steady progress on our full price strategy, notably by
deliberately reducing the promotional sales share, and managing to
decrease the discount rate, both in B&M and digital, with –5.5
pts in Q3 vs 2020.
As planned, over the first 9 months, SMCP
continued its brick-and-mortar network optimisation plan, with –38
DOS, including -45 net closures in France (mainly small points of
sales, in small cities), including the impact of the end of the
Suite 341 format (-27 in 9 months). On the other hand, we pursued
our expansion in APAC, with +19 DOS (including +14 in China).
Sales by
region
In France, sales are gradually
catching up 2019 level, down -10.4% on an organic basis vs 2019. A
solid performance supported by local demand.In comparison to 2020,
sales are nearly stable, down -1.2% on an organic basis. A very
good achievement considering our full price strategy ongoing. We
managed to reduce our discount rate by -7pts in Q3 vs 2020 and to
maintain a positive like-for-like growth.
In
EMEA, we delivered a
strong performance, catching up progressively vs 2019, reaching
-8.6% on an organic basis, despite the loss of tourism-related
sales. If we compare to 2020, sales were up +15.5% on an organic
basis, driven by a strong brick-and-mortar like-for-like growth. A
solid performance when also considering the decrease of the
discount rate by almost -10pts over the quarter vs last year.
In APAC, sales
were up +7.3% on an organic basis vs 2019. A solid growth driven by
a strong performance in Mainland China reaching +15.8% on an
organic basis vs 2019, despite new local Covid resurgences and some
major weather events in key cities, both impacting mobility and
traffic.The rest of Asia delivered a solid performance despite
local Covid cases and very low tourism.In comparison to 2020, sales
in APAC were down -5.7% on an organic basis. A trend explained by a
high comparison basis both in brick-and-mortar and digital, as Q3
2020 benefited from a strong consumption wave, post store
reopening. Digital in China remained solid.
In the Americas, sales have
turned positive vs 2019 for the first time since the beginning of
the pandemic, up +10.4% on an organic basis vs 2019.The United
States are still outperforming, reaching +15.2% vs 2019 on an
organic basis, thanks to a strong demand. In that region, SMCP
delivered a continued growth over the quarter across all channels,
from strength to strength, driven by a very strong brick-and-mortar
like-for-like.Sales in the Americas were up +62.9% on an organic
basis vs 2020, a strong performance considering the discount rate
decrease of more than -10 pts.
PERSPECTIVES
& OUTLOOK
The first weeks of October continue to show a
positive dynamic across all our markets. The Group observes a good
trend in Europe thanks to positive consumer trends, together with
solid U.S. performance. In Mainland China, where October sales
remain strong, SMCP teams are now focusing on China’s 11/11 and
12/12 key sales events. Overall, SMCP is confident in its capacity
to reach 1 billion euros in sales for 2021 and confirms the
mid-term guidance presented during its Investor Day in October
2020.
A conference call with
investors and analysts will be held today by CEO Isabelle Guichot
and CFO Patricia Huyghues Despointes, from 9:00 a.m. (Paris
time).
Related slides will
also be available on the website (www.smcp.com), in the Finance
section.
APPENDICES
Breakdown of DOS
Number of DOS |
Q3-20 |
2020 |
H1-21 |
Q3-21 |
|
Var Q3 21
vs. H1 21 |
Var Q3 21 vs. FY
20 |
Var Q3 21 vs.
Q3 20 |
|
|
|
|
|
|
|
|
|
By region |
|
|
|
|
|
|
|
|
France |
520 |
519 |
494 |
474 |
|
-20 |
-45 |
-46 |
EMEA |
414 |
415 |
408 |
404 |
|
-4 |
-11 |
-10 |
Americas |
167 |
169 |
168 |
168 |
|
- |
-1 |
+1 |
APAC |
229 |
231 |
245 |
250 |
|
+5 |
+19 |
+21 |
|
|
|
|
|
|
|
|
|
By
brand |
|
|
|
|
|
|
|
|
Sandro |
559 |
560 |
559 |
552 |
|
-7 |
-8 |
-7 |
Maje |
451 |
452 |
453 |
456 |
|
+3 |
+4 |
+5 |
Claudie
Pierlot |
219 |
220 |
213 |
211 |
|
-2 |
-9 |
-8 |
Suite 341 |
38 |
38 |
24 |
11 |
|
-13 |
-27 |
-27 |
Fursac |
63 |
64 |
66 |
66 |
|
- |
+2 |
+3 |
Total DOS |
1,330 |
1,334 |
1,315 |
1,296 |
|
-19 |
-38 |
-34 |
Breakdown of POS
Number of POS |
Q3-20 |
2020 |
H1-21 |
Q3-21 |
|
Var Q3 21 vs. H1
21 |
Var Q3 21 vs. FY 20 |
Var Q3 21 vs. Q3 20 |
|
|
|
|
|
|
|
|
|
By region |
|
|
|
|
|
|
|
|
France |
520 |
519 |
494 |
475 |
|
-19 |
-44 |
-45 |
EMEA |
531 |
546 |
554 |
551 |
|
-3 |
+5 |
+20 |
Americas |
187 |
193 |
193 |
197 |
|
+4 |
+4 |
+10 |
APAC |
406 |
419 |
445 |
461 |
|
+16 |
+42 |
+55 |
|
|
|
|
|
|
|
|
|
By
brand |
|
|
|
|
|
|
|
|
Sandro |
714 |
730 |
740 |
743 |
|
+3 |
+13 |
+29 |
Maje |
584 |
596 |
608 |
618 |
|
+10 |
+22 |
+34 |
Claudie
Pierlot |
245 |
249 |
248 |
246 |
|
-2 |
-3 |
+1 |
Suite 341 |
38 |
38 |
24 |
11 |
|
-13 |
-27 |
-27 |
Fursac |
63 |
64 |
66 |
66 |
|
- |
+2 |
+3 |
Total POS |
1,644 |
1,677 |
1,686 |
1,684 |
|
-2 |
+7 |
+40 |
o/w Partners
POS |
314 |
343 |
371 |
388 |
|
+17 |
+45 |
+74 |
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 EBITDA/EBIT
and Adjusted EBITDA/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.
Organic sales growth
Organic sales growth refers to the performance
of the Group at constant currency and scope.
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).
***
METHODOLOGY NOTE
Unless otherwise indicated, amounts are
expressed in millions of euros and rounded to the first digit after
the decimal point. 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 based on 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, including the impact of
the current COVID-19 outbreak. These risks and uncertainties
include those discussed or identified under Chapter 3 “Risk factors
and internal control” of the Company’s Universal Registration
Document filed with the French Financial Markets Authority
(Autorité des Marchés Financiers - AMF) on 30 April 2021 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 Fursac. Present in 43 countries, the Group comprises a
network of over 1,600 stores globally and 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 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
|
|
|
|
SMCP
|
BRUNSWICK |
Mathilde
Magnan |
Hugues Boëton |
|
Tristan Roquet Montegon |
+33 (0) 1 55 80 51 00
|
+33 (0) 1 53 96 83 83 |
mathilde.magnan@smcp.com |
smcp@brunswickgroup.com |
1 Organic growth | All references in this document to the
“organic sales performance” refer to the performance of the Group
at constant currency and scope2 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).3 APAC includes
the Group's Asia-Pacific operations (mainly Mainland China, Hong
Kong SAR, South Korea, Singapore, Thailand, Malaysia, and
Australia).4 Claudie Pierlot and Fursac brands
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