PARIS — SMCP’s plan to decrease dependence on China is paying off, with first-quarter sales at the parent of Sandro and Maje rising 2.6 percent to 287 million euros at constant exchange rates.
The French retailer cited slight growth in all regions outside of Asia. The news pleased investors, which pushed the group’s shares up 2.65 percent higher at market close.
It’s part of the “transition year” plan implemented by chief executive officer Isabelle Guichot in 2024 to reduce its overexposure in what was once its biggest growth market.
“In Asia, our action plan is beginning to bear fruit, despite the ongoing impact of our network optimization in China. These results reflect the collective efforts of the group’s teams in enhancing the desirability of our brands. In a complex and volatile macroeconomic environment, we approach the coming months with cautious confidence, continuing to focus on cost control, operational agility and sustainability to maintain our trajectory of profitable growth,” Guichot said in a trading statement Tuesday.
In the region, sales were down 9.5 percent on an organic basis year-over-year to 53 million euros, following 65 net closures over the last year as the company seeks to reduce its footprint in China and expand in other Asian countries including India, Indonesia and the Philippines.
The group said like-for-like sales were up 1.8 percent in China, though the ongoing impact of the store closures dragged down sales overall.
To help steady the region, SMCP has brought in luxury veteran Kleine Tan as chief executive officer SMCP Asia. The new executive is based in Hong Kong and will implement a new strategic road map.
Outside of China, sales in Asia “remained resilient, with a positive trend in Malaysia and Thailand, and a slightly negative trend in South Korea and Singapore,” the group said.
In India, SMCP partnered with Reliance Brands Ltd. to expand Sandro and Maje in the country. The first store from each brand opened in Mumbai in January. The group plans to open an average of three additional stores a year over the next two years, with the goal to open up to 10 units in the country by 2027. Key target cities after Mumbai will be Delhi, Bangalore and Kolkata.
The group has also signed distribution deals with SSI Group in the Philippines and Map Group in Indonesia to snap up market share in those countries and their growing middle class.
“In the first quarter of 2025, we recorded a solid performance with sales growth across all our key markets, except Asia. This growth was notably driven by our performance in France and the EMEA region, where we continue to gain market share, as well as by the group’s sustained positive momentum in the U.S. market,” Guichot said.
In the Americas, the company saw growth of 2 percent on an organic basis year-over-year to 44 million euros. But sales took a hit with the closure of Hudson’s Bay stores in Canada, where the company had 20 corners. Those are now shuttered, though the company expects to announce a retailer partnership soon, it said in a statement.
In the U.S., SMCP is sticking to its full-price sales strategy and cut its average discount rate by three points as it seeks to upscale its brand reputation for Sandro and Maje.
Despite the Claudie closures, sales were up 4 percent on an organic basis to 102 million euros on the strength of Sandro and Maje, where it has adhered to a new full-price policy.
The rest of Europe saw a bigger boost in the first quarter, with sales up 9.2 percent year-over-year.
SMCP is pursuing a partnership strategy to enter new markets, which included Croatia, Montenegro and Serbia in the first quarter. Existing partnerships in the Middle East and Turkey also “show strong momentum” as those regions are becoming increasingly important.
Following the China closures and openings in new developing markets, the group has 1,640 points of sale worldwide.
Sandro remains its biggest brand, with sales up 4.2 percent in the quarter to 147.5 million euros. Its little sister brand Maje saw sales increase less than one percent to 110.7 million euros at constant currency.
SMCP’s “other brands” category groups Claudie Pierlot and its men’s brand Fursac together, which saw sales rise 2.3 percent to 38.4 million euros in the quarter. The company framed that as “in line with the group’s average.”
“In a complex and volatile macroeconomic context, SMCP is approaching the coming months with a cautious confidence, continuing to focus on cost control, operational agility and sustainability to maintain our trajectory of profitable growth,” the company said.
