SMCP revises annual guidance downwards
In fiscal 2022, SMCP recorded a revenue of €1.206 billion. For fiscal 2023, instead of an expected growth between 5% and 9%, the group said it is aiming to increase revenue by approximately 5%. Notably, SMCP expects EBIT margin to be worse than last year. The group, currently headed by Isabelle Guichot, indicated that the margin could drop from last year's figure of 9.2% to between 7% and 9%.
The French affordable luxury giant, which operates over 1,600 stores worldwide with its four labels, remarked that the economic environment has worsened in several markets, including France.
“Since the group's latest results were published at the end of July, market conditions have generally deteriorated, with growth slowing down in Europe owing to long-term inflationary pressure. For example in France, where the market as a whole has recorded sluggish consumption since the beginning of August, or in other countries like Switzerland and Italy,” the group stated in a press release issued on September 18. “Besides, consumption in China has not grown according to expectations, as shown by the country’s key economic indicators. For the second half of the year, the group expects moderate sales growth compared to 2022, with a stable or slightly sub-par third quarter, and a fourth quarter more in line with the trend of the first half of the year, notably benefiting from a favourable base effect in China,” added SMCP.
The group will publish its Q3 results on October 26.
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