Sandro, Maje Parent’s Store Expansion Drive Solid Q3 Sales

SMCP — the group behind contemporary French fashion labels Sandro, Maje and Claudie Pierlot — posted a 10.8% increase in third-quarter sales as it continued to expand its store network across Asia and the Middle East at a vigorous pace.

Sales for the three months came to 274.5 million euros, with the group flagging market share gains in France, its slower market, and a good start abroad for its fall collections.

“We are confident that this good momentum will continue in the next quarter,” said Daniel Lalonde, CEO of SMCP.

Sales at constant currency and scope rose 9% over the three months, spurred on by brisk growth in Asia, up 21.5%.

The group has been expanding its store network abroad rapidly, with 55 more points of sale in the Europe and Middle East area and 66 in Asia compared to the same period last year. Meanwhile, it has been downsizing its network in France, where it closed six stores over the period, while recently opening a new store on the Avenue des Champs-Élysées for its Claudie Pierlot brand, with an eye to grabbing the attention of tourists with a new, sleeker store format.

At constant currency and scope, sales in France rose 0.6%, while revenues in the Americas region were up 6.3%.

The group is focusing on accessories, and sales for the category grew at a double-digit pace. It is also seeking to increase sales through channels, particularly in mainland China, and noted progress there.

SMCP, which was listed on the Paris stock exchange in 2017 and is controlled by Chinese textile conglomerate Shandong Ruyi Group, confirmed full-year guidance of stable adjusted EBITDA margin, excluding its recent acquisition of menswear label De Fursac, which was finalized on Sept. 5.

This story was reported by WWD and originally appeared on WWD.com.

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