The French clothing group SMCP closed the first quarter of 2022 with strong sales growth. However, the recent tightening of protective measures against the Covid-19 pandemic in China slowed the upward trend. This emerges from an interim report published on Tuesday by the parent company of the Sandro, Maje, Claudie Pierlot and De Fursac brands.
In the months from January to March, group sales amounted to EUR 283.0 million, which corresponds to an increase of 26.4 percent compared to the same quarter of the previous year. On an organic basis – i.e. adjusted for currency effects and the contributions of the now closed Suite 341 retail chain – sales grew by 23.7 percent.
Most market regions grew strongly: In France, sales rose by 19.1 percent (organically +22.7 percent) to EUR 93.7 million, in the other countries of the EMEA region by 74.9 percent (organically +72.9 percent) to 83.1 million euros and in America by 55.0 percent (organically +44.5 percent) to 38.6 million euros.
In the Asia-Pacific region, on the other hand, SMCP had to accept a decline in sales of 7.2 percent (organically -13.9 percent) to 67.6 million euros. After a “good start” to the quarter, the “very strict Covid restrictions in Hong Kong and mainland China” have recently “significantly impacted business there,” the company said.
The group highlighted that in recent months it has made progress in implementing its current One Journey strategy. The discount campaigns were specifically restricted. The company also completed the “optimization” of its stationary branch network as planned: the number of locations has been reduced by 17 since the beginning of the year. The French home market alone accounted for 13 closures, including the last remaining stores of the Suite 341 concept.
The clothing supplier basically confirmed its annual forecasts, but warned of possible negative consequences if the pandemic situation in Asia does not “improve fairly quickly”. The company is currently observing how the tightened protective measures would affect customer frequency in the shops and the supply chains, the group said. In China in particular, the situation could “change quickly” and affect other cities in the future.