×
133
Fashion Jobs
NIKE
Lead Product Management – ed&a, Icc, India
Permanent · Bengaluru
NIKE
India Sports Marketing Manager
Permanent · Bengaluru
NIKE
Senior Dynamic Application Security Tester – Cis, Icc, India
Permanent · Bengaluru
PUMA
Senior Manager - Golf Sales (Cpg-Cobra Puma Golf)
Permanent · Bengaluru
PUMA
Manager - Accounts Payable
Permanent · Bengaluru
PUMA
Senior Manager – Teamsport Sales
Permanent · Bengaluru
NIKE
Lead Technical Product Manager – p&m, Icc, India
Permanent · Bengaluru
PUMA
Manager – Customer Reconciliation And Accounts
Permanent · Bengaluru
PUMA
Manager – Warehouse Operations (Ecommerce)
Permanent · Gurugram
NIKE
Lead Product Manager, India – ed&a Icc
Permanent · Bengaluru
PVH
Manager, Business Solutions
Permanent · Bengaluru
NIKE
Senior Product Manager - Enterprise Service Management (Esm), India – Tech Ops Icc
Permanent · Bengaluru
NIKE
Identity And Access Management (Iam) Security Operations Engineer, India – Cis Icc
Permanent · Bengaluru
NIKE
Expert Security Incident Coordinator, India – Cis Icc
Permanent · Bengaluru
NIKE
Senior Security Engineer, India – Cis Icc
Permanent · Bengaluru
NIKE
Director of Engineering , Retail Commerce – Consumer Marketplace, Icc, India
Permanent · Bengaluru
BROADCAST THE COMPANY
Digital Marketing Internship
Internship · MUMBAI
NIKE
Senior Software Engineer Iii – Retail Commerce Pos, India - Consumer & Marketplace Icc
Permanent · Bengaluru
NIKE
Senior Software Engineer ii – Retail Commerce Pos, India - Consumer & Marketplace Icc
Permanent · Bengaluru
SHAYA BY CARATLANE
Merchandiser & Planner
Internship · MUMBAI
NIKE
Senior Software Engineer Iii, India – Marketing Technology Icc
Permanent · Bengaluru
SS HOMME - SARAH & SANDEEP
Marketing And PR Intern
Internship · MUMBAI
By
Reuters
Published
Mar 22, 2019
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Sandro-owner SMCP expects slower growth as French protests drag on

By
Reuters
Published
Mar 22, 2019

SMCP, the French fashion group behind Sandro, forecast sales would grow at a more moderate pace in 2019 as street protests rock its home market and Britain's messy EU exit spreads uncertainty, sending its shares lower on Wednesday.




The company, which also owns so-called "affordable luxury" brands Maje and Claudie Pierlot, said it expected sales to expand by 9 to 11 percent at constant currencies in 2019, after 13 percent growth in 2018.

"We're seeing a slightly uncertain macro-economic backdrop, especially in France, and also a little linked to the Brexit situation," Chief Executive Daniel Lalonde told reporters.

SMCP's adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) rose 11.6 percent to 171.5 million euros ($196 million) in 2018.

The shares were down 8 percent by 1135 GMT. Analysts at Jefferies said the group's guidance was "moderately disappointing."

SMCP is expanding rapidly across Asia and Europe with new stores but makes the bulk of its money in France, where "yellow vest" protests over the cost of living erupted last November and have led to rioting in Parisian shopping districts.

Last Saturday shops on the Champs Elysee avenue were looted as violence flared up, forcing some retailers to close shops.

The financial effect on SMCP has so far been muted, costing it 4 million euros in lost earnings last year, or under 1 percent of its 1 billion euro ($1.14 billion) turnover.

The company, controlled by Chinese retail group Shandong Ruyi, expects to add just over 100 points of sale to its 1,466-strong network this year, mainly across Asia and in Europe.

Greater China in particular was proving promising, Lalonde said, adding the year had got off to a "very, very good start" there - a reassuring signal for other high-end fashion brands concerned about the fallout from a U.S- China trade war.

But SMCP - whose labels like Sandro sell dresses around the 400 euro mark, on a par with French rivals like The Kooples or Britain's Ted Baker - also faces risks as it adds to fixed costs and competition rises in its market segment.

Ted Baker reported its first annual profit drop since 2008 on Wednesday.

SMCP's comparable sales, when not factoring in store openings, progressed by 3.7 percent in 2018.

The group is banking on a flat operating margin in 2019, after it reached 16.9 percent last year, as it invests in e-commerce globally and in logistics in Asia, Lalonde said.

 

© Thomson Reuters 2021 All rights reserved.