U.S. Market Drives SMCP: Achieves 3.3% Growth in Second Quarter Amid China’s Setback

French fashion company Smcp, owner of the Sandro, Maje, Claudie Pierlot and Fursac brands, increased its sales to €304.5 million between April and June. The group more than doubled its operating margin and generated record cash flow.

Smcp closed the second quarter of the year with a 3.3% increase in sales. The positive evolution was supported by the good performance in Europe and the Americas, and by a strict policy of selling at full price, which reduced the average discount by three percentage points compared to the same period in 2024.

The company more than doubled its operating income (ebit) in the first half of the year to €42.6 million, compared with €18.8 million in the same period a year earlier. The improvement in profitability also translates into a net profit of €11 million, compared to a loss of €27.7 million in the first half of 2024.

Financial discipline has been reinforced on all fronts: Smcp has reduced its net debt by 30% to €205.6 million and generated a record free cash flow of €33.1 million in the first half.

Smcp supported its growth in the United States and the Emea region

Adjusted ebitda margin increased from 3.2% to 7.1% of revenue in the half year; while adjusted ebitda increased by 13.8% to €112 million, representing 19% of sales.

By region, the Americas was the group’s driving force, with a 21.6% rise in the second quarter to €49.6 million, driven by price increases, higher sales volumes and the base effect of openings in 2024. This positive performance came despite the closure of 25 stores in Canada following the closure of Hudson’s Bay. The group is now looking for a new partner to operate in this market.

In the Europe, Middle East and Africa region (excluding France), sales rose 3% to €106 million, supported by 6% growth in comparable sales and the entry into new countries such as the Balkans and Jordan.

France, on the other hand, posted a flat performance in the quarter, up 0.6% in organic terms to €104.9 million. Full-price sales of Maje and Claudie Pierlot offset the high comparable base in the second quarter of 2024.

Asia-Pacific was the only market in decline, down 6.2% to €43.9 million, as a result of the restructuring of its network in China. The group closed 65 stores in this country over the course of 2024, and is continuing its reorganization in the region. However, there were positive signs in markets such as Singapore, Thailand and Vietnam, as well as a good reception in new entrants such as India, the Philippines and Indonesia.

Sandro and Maje grow, Claudie Pierlot and Fursac decline

By brand, Sandro increased its sales by 3.3% in the second quarter to €154.7 million. Maje posted higher growth of 4.9%, with sales of €113.6 million. Together, the two brands accounted for more than 88% of the group’s quarterly volume.

The rest of the portfolio, comprising Claudie Pierlot and the men’s brand Fursac, fell by 1.4% to €36.2 million. This development was anticipated by the company, which continued the rationalization of its network with the closure of four Claudie Pierlot stores in the quarter. In total, the group has reduced its network by 20 outlets in the first half.

Smcp’s worldwide network totaled 1,642 outlets at the end of June, of which 387 were operated by partners. The company has strengthened its presence through local partnerships, particularly in Emea.

Smcp’s management, headed by Isabelle Guichot, stressed that the half-year results “validate the strategy of full-price repositioning and network optimization”, and that the group is “fully mobilized to confirm the positive trend in the second half of the year”.