SMCP vows to continue China roll-out
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SMCP, the group behind French fashion brands Claudie Pierlot, Maje and Sandro plans to pursue its international expansion, particularly in China, where it will continue to open about 30 shops a year.
SMCP president/CEO Daniel Lalonde says the strategy has not changed after majority owner KKR agreed to sell control to China’s Shandong Ruyi in a €1.3 billion (US$1.4 billion) deal that made the company cancel its application for a Paris flotation.
Shandong Ruyi will own 80 per cent of SMCP while KKR will retain a 10 per cent stake. The balance will be held by founders Evelyne, Ylan Chetrite and Judith Milgrom shared with management.
Meanwhile, SMCP has bucked the global fashion industry’s sluggish sales growth trends with a 9.3 per cent increase in like-for-like revenue in the first half.
Including the impact of foreign exchange and new stores, first-half sales were up 19.2 per cent at €377.2 million globally.
Lalonde says SMCP’s digital strategy is paying off with online sales making up 10 per cent of total revenue, up from 6 per cent last year.
Questions & Answers
Q.What is SMCP's annual store opening target specifically for the Chinese market?
What is SMCP's annual store opening target specifically for the Chinese market?
SMCP plans to open about 30 shops a year in China as part of its international expansion strategy. This focus on China continues despite the change in majority ownership.
Q.How has SMCP's ownership structure changed following the deal with Shandong Ruyi?
How has SMCP's ownership structure changed following the deal with Shandong Ruyi?
Shandong Ruyi will now own 80 per cent of SMCP, while KKR retains a 10 per cent stake. The remaining balance is held by the founders and management.
Q.What was the total global sales figure for SMCP in the first half?
What was the total global sales figure for SMCP in the first half?
SMCP's first-half global sales were up 19.2 per cent, reaching €377.2 million. This figure includes the impact of foreign exchange and new store openings.
Q.What percentage of SMCP's total revenue now comes from online sales?
What percentage of SMCP's total revenue now comes from online sales?
Online sales currently make up 10 per cent of SMCP's total revenue. This is an increase from 6 per cent reported last year, indicating a successful digital strategy.