PARIS – Sandro and Maje parent company SMCP reported modest growth as the French fashion group continues to pursue a strict full-price strategy and tight inventory controls to stabilize sales across its brands.
In the second quarter, sales rose 3.3 percent on an organic basis, reaching 304.5 million euros.
The stabilization of the company, following overexposure in China and the subsequent shuttering of stores there, is part of chief executive officer Isabelle Guichot’s long-term recovery strategy.
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“These aren’t overnight changes — they are long-term strategic projects. We are seeing the results of what we planted over the last 18 months,” she said on a call following the release of the results.
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Those seeds are the appointment of new chief executive officers: former marketing and investment fund exec Louise Bousquet Andreani at Fursac, and former Tara Jarmon exec Anne Cottin at Claudie Pierlot, both of whom took their respective helms earlier this year.
Inventory on hand was down 13 percent year-over-year.
Guichot highlighted these key initiatives, including the hiring of the new brand heads tasked with rethinking and revitalizing the group’s portfolio of contemporary labels. The company has also appointed a new head of digital strategy to rebuild its online presence.
“All this sets us up for recovery in 2025,” she said.
One key market was the Americas, which delivered a standout performance in the second quarter, with sales surging 21.6 percent. Growth was fueled by price increases and higher volumes, supported by momentum from several U.S. store openings last year.
“We posted remarkable organic growth there, despite a competitive and uncertain environment. This growth came through both retail and partnerships — including concessions and franchise partners,” Guichot said.
Sales in the Americas reached 49.6 million euros, despite the closure of 25 points of sale in Canada following the shutdown of Hudson’s Bay locations.
The company is currently seeking a new partner in Canada.
Guichot said the company has raised prices in the U.S. and incorporated tariffs into its pricing model. “It’s consistent with our forecasts and doesn’t negatively impact performance. In fact, we’ve historically priced U.S. collections higher than European ones, so the impact is relatively contained. Our U.S. success isn’t just pricing, it’s volume as well,” she said.
She added that about 60 percent of the company’s production is now outside of China and that this diversification strategy will be an asset moving forward.
“Yes, Chinese-made goods are more affected by tariffs. But overall, we built this into our pricing models — 20 percent tariffs on European-made goods and higher on Chinese-made items. The strategy is sound,” she said.
In its home market of France, sales edged up by less than 1 percent on an organic basis to 104.9 million euros.
“We saw good momentum across all channels and continue to focus on our retail strategy, particularly around margin optimization and reduced discounting,” said Guichot.
She noted that SMCP’s stable of brands are “performing better than most of our peers,” at a time when French high street labels have been hit by a wave of closures and administrative bankruptcy procedures. With other brands shuttering, “we’re gaining market share fairly easily,” she said.
Across the rest of the Europe, Middle East and Africa region, excluding France, sales rose 3 percent to 106 million euros. SMCP noted that retail performance remained steady, while wholesale results were affected by timing shifts.
In the Asia-Pacific region, sales declined 6.2 percent to 43.9 million euros, reflecting a wave of store closures, primarily in China. However, EMEA benefited from expansion into new markets such as the Balkans and Jordan.
“That was expected. The decline reflects the strategic contraction of the network last year,” said Guichot. “One key area we’re closely monitoring is in-store traffic, which is stabilizing. We’re seeing promising starts in emerging markets like India, Indonesia, and the Philippines.”
Still Waiting for Its Shares
In an update on SMCP’s long-running legal battle with former majority shareholders Dynamic Treasure Group and European TopSoho, the Singapore High Court ordered the restitution of shares that were illegally transferred in 2021. The decision was handed down on July 10, and the shares were to be returned within one week — but SMCP has yet to receive them.
Guichot said that while DTG and European TopSoho could still appeal the ruling, SMCP has initiated transfer procedures through the Singapore court and will inform the markets as required.
Sandro Still on Top
Looking at performance by brand, Sandro posted a 3.3 percent increase in second-quarter sales, reaching 154.7 million euros. “Little sister” brand Maje grew 4.9 percent to 113.6 million euros, with 14 new points of sale opening in the EMEA region in the second quarter.
Combined sales for Claudie Pierlot and men’s brand Fursac, which are not reported individually, totaled 36.2 million euros — down 1.3 million euros year-over-year — in line with expectations following the closure of four Claudie Pierlot stores during the three-month period to June 30.
Claudie Pierlot is among the brands that have a new creative team and is rebranding to be known simply as “Claudie” going forward.
Looking at the first half, total sales reached 601.1 million euros, representing a 3 percent increase on an organic basis in the first six months of the year.
Net financial debt stood at 206 million euros as of June 30 — an 87-million-euro reduction from the same date a year earlier. Guichot noted that the company’s debt ratio has now fallen below 2 percent and emphasized that SMCP is continuing to de-leverage in order to strengthen its financial position moving forward.