The French fashion group SMCP suffered from the adverse conditions in important markets during the Christmas business. In view of the sobering sales development in the fourth quarter of the 2023 financial year, the parent company of the Sandro, Maje, Claudie Pierlot and Fursac brands updated its forecasts on Friday.
In the final quarter of last year, revenue remained constant compared to the same period last year, adjusted for currency effects, the clothing supplier explained. The company “performed well” in the USA, but experienced a “difficult” December in Europe and particularly in France. In addition, business in China had developed “less dynamically than expected,” admitted SMCP. Despite the headwind, the company decided to stick to its “very strict discount policy”.
Based on the available figures, management now expects sales of around 1.23 billion euros for 2023, which would correspond to a currency-adjusted increase of 3.8 percent compared to the previous year. Growth of a mid-single-digit percentage was previously forecast. The forecast for the EBIT margin adjusted for special effects, which had previously been seven to nine percent, was reduced to 6.4 to 6.6 percent.