SMCP - Press Release - 2024 H1 Results

In This Article:

H1 2024 Results
Press release - Paris, July 25th, 2024

Resilient sales excluding China
Continued financial discipline and execution of the action plan

  • H1 2024 Sales at €585m, decreasing by -3.6% on an organic0F0F1 basis vs. H1 2023 Sales at €610m

    • Sales growth in America in S1, resilience in Europe, sequential improvement in Q2 in France and continued very slow consumption in China

    • Growth for Sandro and Maje in the first semester in all regions excluding China

    • Strict full-price strategy with a two-point decrease of average in-season discount rate vs H1 2023

  • Q2 2024 Sales at €298m, decreasing by -2% on an organic basis vs Q2 2023 Sales at €305m; positive sales performance excluding China

  • Pursuit of network optimization with 29 net closings in the semester, mainly in Asia and for Claudie Pierlot, to reach 1,701 POS

  • Adjusted EBIT at €19m (3.2% of sales) from €36m in H1 2023 (6% of sales). One-off effects such as restructuring costs, and inflationary effects, are partially offset by cost reduction plans

  • Net income at -€28m includes €30m of non-recurring accounting impacts of impairment (non-cash). Excluding these effects (net of income tax), net income is breakeven.

  • Continued financial discipline with a reduction in inventories (-7% vs FY 2023) and a strict control of investments, resulting in a decrease in net debt vs June 30th, 2023 and in a stable free-cash-flow

  • Pursuit and acceleration in the second semester of mid-term action plan to return to profitable growth

  • Continued efforts in CSR with the implementation of the Diversity and Inclusion policy and satisfactory results in reducing the carbon footprint (-15% in 2023)


Commenting on those results, Isabelle Guichot, CEO of SMCP, stated: “In a persistently challenging macroeconomic environment, as anticipated, the Group demonstrates resilient performance outside China. The dynamic in America and sound sales in Europe have partially offset the continued weakness in consumption in Asia, particularly in China, where SMCP has already begun to adjust its network of points of sales, while continuing initiatives aimed at revitalizing medium-term growth in the country. At Group level, our action plan launched at the beginning of the year, aimed at reviving our profitable growth, is beginning to bear fruit. Nevertheless, our profitability is still affected by one-off effects related to the restructuring of our store network in China and that of Claudie Pierlot, as well as additional costs linked to inflation. In the second half of the year, we will continue our efforts to deploy our action plan both in terms of driving our sales in promising markets and optimizing our costs, whose effects should accelerate in 2025 (with the goal of having a positive impact of 25 million euros on our profitability by 2026). SMCP teams are fully committed to this trajectory, and I would like to thank them for their unwavering dedication.”