Fashion

SMCP beats sales standard by 1 billion euros again as recovery is on the rise


Reward giant fashion SMCP has faced many challenges over the past year with the pandemic and long saga that has ousted the company’s former major shareholder. But the company itself and its brands haven’t stopped growing.

Sandro

At the end of Wednesday, it said sales again exceeded 1 billion euros in the most recent financial year, and that sales in Q4 were “on par” with pre-pandemic levels as they gradually improved. throughout the year.

Compared to Q4 2020, sales were up 22.1% on an organic basis.

Meanwhile, sales for 2021 as a whole rose 18.7% to €1.038 billion (all percent on an organic basis) year-over-year, although they were down 9.7% year-on-year. 2019 due to the pandemic continuing to affect.

Last year’s sales momentum was driven by Asia-Pacific with mainland China down sharply from 2019 with a steady increase of 15.2%. Meanwhile, the Americas are back to pre-pandemic levels, helped by the US outperforming with a two-year 5.5% gain.

E-commerce performance is also “very strong,” and the company cites digital penetration as 23%.

Additionally, it praises the continued execution of its full pricing strategy. This resulted in higher profits and the company reported strong growth in adjusted EBIT to €95.3 million, compared with just €7 million in 2020. Net income also surged at 23, 6 million euros after a loss of more than 102 million euros a year earlier.

The company is also upbeat about the current year, despite current geopolitical issues, and said it expects double-digit sales growth over 2021 and sales to grow at a moderate rate. single digit compared to 2019. Adjusted EBIT will be at least relevant to Year 2021.

ROUND AND BRAND

Taking a closer look at the region’s performance for the year, SMCP says that in France, sales have “slowly caught up with [to] 2019 levels for the first nine months, finally surpassed them in the fourth quarter.” Compared to 2020, sales were up 9.6%, fueled by a similar growth of 11.7%.

It says the performance is “remarkable above all” as it includes a 5pt reduction in the discount rate for the year and the completion of the network optimization plan (-46 POS at the end of 2021 compared to 2020). Down 16.3% on a organic basis compared to 2019, France’s performance was “supported by local demand” and “remains solid, especially due to severe constraints in the first half of the year”. .

At EMEA, group sales increased 19.6% compared to 2020, thanks to strong growth in physical stores (+28%). Again, the company continued to cut prices, but the region is still down 16.6% year-over-year despite store closures in the first half of the year and a drop in travel-related revenue.

In Asia Pacific, sales were up 14.5% y/y and 5.5% y/y, driven by both physical and digital sales. As mentioned, China is strong, despite continued local Covid outbreaks and major weather events in key cities, especially in the second half of the year.

In the Americas, sales are up 57.2% compared to 2020 and also almost back to pre-pandemic levels (only 0.6% down from 2019 in fact), as mentioned, the US has beat 2019’s figures.

Meanwhile, with regard to individual brands, the company has achieved sales in 2021 of 497.6 million euros for Sandro, up 19.8% on an organic basis. In the fourth quarter, the brand’s sales increased 24.8% to 154.1 million euros.

Sales at Maje increased 20.7% to 407.3 million euros for the year and 17% to 117.9 million euros for the quarter. The company’s other brands (Claudie Pierlot and Fursac) grew by 9.4% at 133.7 million euros for the year and 27.7% at 41.5 million euros in the fourth quarter.

“Throughout the year, our performance has continued to improve despite the many limitations associated with the Covid-19 recovery around the world (resulting in both),” said CEO Isabelle Guichot. store closures and a major impact on mobility and traffic), allowing us to return to par with our pre-pandemic operating levels.

“Despite the uncertain market conditions, we were able to significantly improve our bottom line and generate record free cash flow. The group is now perfectly positioned to pursue our strategic roadmap. strategy and I am confident in my ability to achieve my goals by 2025.”

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