SMCP - 2019 Full Year Sales
2019 Full Year sales Press
release - Paris, January 29th, 2020
Robust sales growth in
2019 2019
adj. EBITDA margin guidance confirmed
- 2019 sales growth up +8.7% at ccs.1 (+11.3% as reported)
despite sharp market deterioration in Hong-Kong in Q4 and French
social movements
- Stable Like-for-Like sales growth (-0.1%) in 2019 with positive
contribution from all regions in Q4 19
- Double-digit international sales growth at ccs. and solid
resilience in France (+0.5% at ccs.) in Q4 19
- Dynamic year of openings with +90 net DOS, in line with
roadmap
- Confirmation of full-year 2019 guidance on adj. EBITDA margin
of between 15.5% and 16%
Commenting on the report, Daniel
Lalonde, SMCP’s CEO, stated: “In 2019, thanks to the
strength of our brands, teams and business model, we delivered a
robust growth despite increasingly tough market conditions
particularly in the Parisian region and in Hong Kong. While Sandro
and Maje delivered another strong year with double-digit growth,
Claudie Pierlot has been transitioning to become a global brand. In
2019, we continued to roll-out our roadmap by strengthening our
growth platform in China, further developing accessories, enriching
the omni-channel customer experience, and building solid
foundations on sustainability. Looking forward, one of our key
focuses is to drive like-for-like sales growth through initiatives
which will be detailed at our Capital Market Day in April 2, 2020.
Finally, we confirm our full-year 2019 guidance on adj. EBITDA
margin.
€m except
%Unaudited figures |
Q4 2018 |
Q4 2019 |
Sales growth at ccs.1 |
Reported change 2 |
2018 |
2019 |
Sales growth at ccs.1 |
Reported change 2 |
Sales by
region |
|
|
|
|
France |
98.3 |
109.2 |
+0.5% |
+11.1% |
374.9 |
384.6 |
-0.7% |
+2.6% |
EMEA3 |
82.3 |
91.4 |
+9.4% |
+11.1% |
305.5 |
337.6 |
+9.8% |
+10.5% |
Americas |
41.5 |
45.7 |
+6.2% |
+10.0% |
134.2 |
150.4 |
+6.7% |
+12.0% |
APAC4 |
54.1 |
70.8 |
+29.1% |
+30.9% |
202.5 |
259.2 |
+25.8% |
+28.0% |
Sales by Brand |
|
|
|
|
Sandro |
138.8 |
155.8 |
+10.9% |
+12.3% |
500.6 |
551.6 |
+8.7% |
+10.2% |
Maje |
103.3 |
117.6 |
+12.5% |
+13.8% |
391.4 |
438.2 |
+10.5% |
+12.0% |
Other brands5 |
34.0 |
43.6 |
-4.3% |
+28.2% |
125.2 |
142.1 |
+3.0% |
+13.5% |
TOTAL |
276.1 |
317.0 |
+9.6% |
+14.8% |
1,017.1 |
1,131.9 |
+8.7% |
+11.3% |
2019 FULL-YEAR
SALES
In 2019, consolidated sales reached €1,131.9
million, up +8.7% at constant currency and scope. Reported sales
were up +11.3%, including a positive currency impact of +1.3% and
De Fursac’s contribution of +1.2% since September 2019.
This performance reflected a stable (-0.1%)
like-for-like sales growth, with a sequential acceleration in H2
2019 (+0.8%), as well as a continued expansion of the stores
network, in line with the Group’s roadmap.
Over the last twelve months, SMCP net openings
amounted to +90 directly operated stores. This includes +41 net
openings in APAC, +45 in EMEA and +14 in the Americas. Meanwhile,
in France, where the Group has pursued the optimization of its
network with -10 net closings (DOS), SMCP continued to invest in
new qualitative locations such as Sandro-Strasbourg or Maje-rue
Soufflot in Paris. In Q4 2019, SMCP opened +27 directly operated
stores globally.
2019 also showed some progress in digital, as
online sales now represent 14.9% of the Group’s revenue (+ 20 bps
vs. last year). In parallel, Accessories showed a strong increase
of +18.4% mainly driven by Maje and Claudie Pierlot.
2019 FOURTH
QUARTER SALES
In the fourth quarter of 2019, consolidated
sales reached €317.0 million, up +9.6% at constant currency and
scope, showing a solid resilience in a challenging environment
marked by strikes in France and a sharp market deterioration in
Hong-Kong. Reported sales were up +14.8%, including a positive
currency impact of +1.2% and De Fursac’s contribution of +3.9%.
This performance notably reflected a sequential improvement in
like-for-like sales growth compared to Q3 2019, with positive
contribution from all regions, including France.
Sales
breakdown by region
In France, sales were up +0.5%
at ccs. in a continuously challenging environment. Following a
solid performance in October and November, December was impacted by
the social movements that weighed on traffic in stores. Meanwhile,
SMCP pursued its network optimization plan with -3 net closings
over the quarter combined with qualitative investments in key
locations including Sandro-Strasbourg and Maje-rue Soufflot
(Paris).
In EMEA, sales growth stood at
+9.4% at ccs., driven by key countries such as Spain, Germany and
Italy. In parallel, the UK, first contributor in the region, showed
a flat performance in a tough and volatile market, impacted by
Brexit related uncertainties.
In the Americas, the Group
registered a good performance of +6.2% sales growth at ccs.
considering the high basis of comparison (+25.7% at ccs. in Q4
2018). This performance has been achieved through a double-digit
retail sales growth (representing 93% of total business in sales)
while partner’s sales decreased due to the adjustment of the
channel distribution (closure of 9 corners in Q3 19).
In APAC, the Group recorded
another very strong quarter with +29.1% of sales growth at ccs.
despite the continued deterioration of the market in Hong-Kong.
This very strong performance reflected an outstanding performance
in mainland China which has been amplified by some additional
off-price operations, on past season inventories. Excluding
off-price sales, mainland China recorded c.30% of sales growth at
ccs.
Sales
breakdown by brand
Sandro (+10.9% at ccs.) and
Maje (+12.5% at ccs.) registered a double-digit
sales growth in Q4 2019, driven by strong FW19 collections.
Maje performance reflected strong results of its
collection in Europe and APAC as well as a successful gifting
strategy for the end of the year. Sandro showed a
strong sales’ performance in the US and an acceleration of Sandro
men in Europe.
Meanwhile, Claudie Pierlot
(-4.3% at ccs.) has been impacted by its transition to become a
global brand. Claudie Pierlot has launched a consumer study and is
continuing to work on the gradual evolution of the brand’s
marketing and products mix through further adjustments of its
collection, store concept and marketing plan.
Over the last twelve months,
Sandro recorded +47 DOS net openings, including a
dual gender store at The Grove in Los Angeles, the relocation of a
dual gender store in Strasbourg (France) and a store in Mix C Hefei
in Q4 2019. Maje pursued its development with +35
DOS net openings, including key stores at Fashion Valley in San
Diego, One ITC in Shanghai and the store relocation rue Soufflot,
in Paris, in Q4 2019. Finally, Claudie Pierlot
recorded +11 DOS net openings and increased its international
footprint notably with +7 DOS in APAC.
GUIDANCE
CONFIRMED
For 2019, SMCP confirms its adjusted EBITDA6
margin guidance of between 15.5% and 16.0%.
FINANCIAL
CALENDAR
- March 25, 2020 - FY 2019 results
- April 2, 2020 - Capital market day
- April 23, 2020 - 2020 Q1 sales
- July 23, 2020 - 2020 H1 sales
- Sept. 4, 2020 - 2020 H1 results
APPENDICES
Breakdown of DOS
Number of DOS |
2018 |
Q1-19 |
H1-19 |
T3-19 |
2019 |
Var. vs. T3 19 |
Var. vs. FY 18 |
|
|
|
|
|
|
|
|
By region |
|
|
|
|
|
|
|
France |
482 |
476 |
481 |
475 |
472 |
-3 |
-10 |
EMEA |
364 |
372 |
385 |
395 |
409 |
+14 |
+45 |
Americas |
148 |
144 |
146 |
156 |
162 |
+6 |
+14 |
APAC |
178 |
188 |
195 |
209 |
219 |
+10 |
+41 |
|
|
|
|
|
|
|
|
By brand |
|
|
|
|
|
|
|
Sandro |
503 |
505 |
520 |
536 |
550 |
+14 |
+47 |
Maje |
409 |
414 |
423 |
435 |
444 |
+9 |
+35 |
Claudie Pierlot |
213 |
214 |
217 |
220 |
224 |
+4 |
+11 |
Suite 341 |
47 |
47 |
47 |
44 |
44 |
- |
-3 |
|
|
|
|
|
|
|
|
Total DOS |
1,172 |
1,180 |
1,207 |
1,235 |
1,262 |
+27 |
+90 |
Breakdown of POS
Number of POS |
2018 |
Q1-19 |
H1-19 |
T3-19 |
2019 |
Var. vs. T3 19 |
Var. vs. FY 18 |
|
|
|
|
|
|
|
|
By
region |
|
|
|
|
|
|
|
France |
482 |
476 |
481 |
475 |
472 |
-3 |
-10 |
EMEA |
480 |
491 |
504 |
516 |
531 |
+15 |
+51 |
Americas |
174 |
176 |
181 |
182 |
189 |
+7 |
+15 |
APAC |
330 |
342 |
352 |
374 |
386 |
+12 |
+56 |
|
|
|
|
|
|
|
|
By
brand |
|
|
|
|
|
|
|
Sandro |
646 |
653 |
672 |
690 |
707 |
+17 |
+61 |
Maje |
538 |
549 |
557 |
567 |
577 |
+10 |
+39 |
Claudie
Pierlot |
235 |
236 |
242 |
246 |
250 |
+4 |
+15 |
Suite 341 |
47 |
47 |
47 |
44 |
44 |
- |
-3 |
|
|
|
|
|
|
|
|
Total POS |
1,466 |
1,485 |
1,518 |
1,547 |
1,578 |
+31 |
+112 |
|
|
|
|
|
|
|
|
o/w Partners POS |
294 |
305 |
311 |
312 |
316 |
+4 |
+22 |
NB: De Fursac POS stood at 62 in Q4 19, including 60 DOS,
bringing the total to 1,640 POS for SMCP o/w 1,322 DOS
FINANCIAL
INDICATORS NOT DEFINED IN IFRS
The Group uses certain key financial and
non-financial measures to analyse the performance of its business.
The principal performance indicators used include the number of its
points of sale, like-for-like sales growth, Adjusted EBITDA and
Adjusted EBITDA margin.
Number of points of sale
The number of the Group’s points of sale
comprises total retail points of sale open at the relevant date,
which includes (i) directly-operated stores, including
free-standing stores, concessions in department stores,
affiliate-operated stores, factory outlets and online stores, and
(ii) partnered retail points of sale.
Like-for-like sales growth
Like-for-like sales growth corresponds to retail
sales from directly operated points of sale on a like-for-like
basis in a given period compared with the same period in the
previous year, expressed as a percentage change between the two
periods. Like-for-like points of sale for a given period include
all of the Group’s points of sale that were open at the beginning
of the previous period and exclude points of sale closed during the
period, including points of sale closed for renovation for more
than one month, as well as points of sale that changed their
activity (for example, Sandro points of sale changing from Sandro
Femme to Sandro Homme or to a mixed Sandro Femme and Sandro Homme
store). Like-for-like sales growth percentage is presented at
constant exchange rates (sales for year N and year N-1 in foreign
currencies are converted at the average N-1 rate, as presented in
the annexes to the Group's consolidated financial statements as at
December 31 for the year N in question).
Adjusted EBITDA and adjusted EBITDA
margin
Adjusted EBITDA is defined by the Group as
operating income before depreciation, amortization, provisions and
charges related to share-based long-term incentive plans (LTIP).
Consequently, Adjusted EBITDA corresponds to EBITDA before charges
related to LTIP.Adjusted EBITDA is not a standardized accounting
measure that meets a single generally accepted definition. It must
not be considered as a substitute for operating income, net income,
cash flow from operating activities, or as a measure of liquidity.
Adjusted EBITDA margin corresponds to adjusted EBITDA divided by
net sales.
***
METHODOLOGY NOTE
Unless otherwise indicated, amounts are
expressed in millions of euros and rounded to the nearest million.
In general, figures presented in this press release are rounded to
the nearest full unit. As a result, the sum of rounded amounts may
show non-material differences with the total as reported. Note that
ratios and differences are calculated based on underlying amounts
and not on the basis of rounded amounts.
***
DISCLAIMER: FORWARD-LOOKING
STATEMENTS
Certain information contained in this document
include projections and forecasts. These projections and forecasts
are based on SMCP management's current views and assumptions. Such
forward-looking statements are not guarantees of future performance
of the Group. Actual results or performances may differ materially
from those in such projections and forecasts as a result of
numerous factors, risks and uncertainties. These risks and
uncertainties include those discussed or identified under Chapter 4
“Risk factors” of the Company’s registration document (document de
référence) filed with the French Financial Markets Authority
(Autorité des Marchés Financiers - AMF) on 26 April 2019 and
available on SMCP's website (www.smcp.com).This document has not
been independently verified. SMCP makes no representation or
undertaking as to the accuracy or completeness of such information.
None of the SMCP or any of its affiliate’s representatives shall
bear any liability (in negligence or otherwise) for any loss
arising from any use of this document or its contents or otherwise
arising in connection with this document.
***
A conference call to
investors and analysts will be held today by Daniel Lalonde, CEO
and Philippe Gautier, CFO and Operations Director from 9.00 a.m.
(Paris time).
Related slides will
also be available on the website (www.smcp.com), in the Finance
section.
ABOUT SMCP
SMCP is a global leader in the accessible luxury
market with four unique Parisian brands: Sandro, Maje, Claudie
Pierlot and De Fursac. Present in 41 countries, SMCP is a
fast-growing company which reached the milestone of €1bn in sales
in 2018. The Group comprises a network of over 1,500 stores
globally plus a strong digital presence in all its key markets.
Evelyne Chetrite and Judith Milgrom founded Sandro and Maje in
Paris, in 1984 and 1998 respectively, and continue to provide
creative direction for the brands. Claudie Pierlot and De Fursac
were respectively acquired by SMCP in 2009 and 2019. SMCP is listed
on the Euronext Paris regulated market (compartment A, ISIN Code
FR0013214145, ticker: SMCP).
CONTACTS
INVESTORS/PRESS
PRESS
SMCP
BRUNSWICK
Célia d’Everlange
Hugues
Boëton
Tristan Roquet Montegon
+33 (0) 1 55 80 51 00
+33 (0) 1 53 96 83
83
celia.deverlange@smcp.com
smcp@brunswickgroup.com
1 All references to “ccs.” in this press release correspond to
sales growth at constant currency & scope
2 Including De Fursac sales
3 EMEA covers the Group's activities in European countries
excluding France (mainly the United Kingdom, Spain, Germany,
Switzerland, Italy and Russia) as well as the Middle East
(including the United Arab Emirates).
4 APAC includes the Group's Asia-Pacific operations (mainly
Mainland China, Hong Kong, South Korea, Singapore, Thailand and
Australia).
5 Claudie Pierlot and De Fursac brands
6 This guidance is disclosed without taking into account the
impact of the application of IFRS 16, effective as of the fiscal
year 2019.
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