China-owned SMCP reported a double-digit uptick in its full-year sales for 2019, on the back of surging international sales growth and solid sales in France.
The French luxury retail group said full-year 2019 sales hit 1.13 billion euros, up 11.3%, or 8.7% in constant currencies.
The owner of Sandro, Maje, Claudie Pierlot and De Fursac, said international sales were up 14.2%, with “solid resilience” in its domestic France, which proved a “tough market” in 2019.
Sales in France were down 0.7% to 384.6 million euros, and grew 25.8% in the Asia Pacific region to 259.2 million euros. SMCP also said its accessories and e-commerce activities helped growth.
EBITDA was up 1.6% to 174.2 million euros, with margin reaching 15.4%. Net income increased 14.1% to 59.4 million euros, excluding refinancing penalties.
In relation to the impacts of the Covid-19 virus, SMCP in January said it had created a global crisis team to manage the situation daily, with an immediate action plan put in place to mitigate the impacts its business.
“We are grateful to our local teams for their dedications and professionalism during these challenging times.We have put in place a global team to monitor the situation on a daily basis, with the key priority of ensuring the safety, health and protection of our employees and our customers. While we cannot predict the duration of the crisis, we have been taking appropriate measures to mitigate the impact on our business. Beyond this, I remain fully confident in our strategy, the strength of our brands and their potential in China,” said Daniel Lalonde, CEO of SMCP, at the time of the update.
Looking ahead, SMCP said first-quarter 2020 sales are expected to be down by slightly more than 20%, as reported.