SMCP is redesigning its strategy by closing stores in China and expanding into Asia and America to counteract the decline in sales.
The fashion group SMCP, owner of brands such as Sandro, Maje, Claudie Pierlot, and Fursac, has experienced a slight decline in its third-quarter sales due to low demand in China. The company reported a decrease of 0.9% in revenue, reaching €292.6 million, with the Asia-Pacific region leading the decline. Sales in this area fell by 18.6% year-on-year, driven by low consumer confidence and a decrease in foot traffic in China, which led to the closure of ten stores in the country during the quarter.
To mitigate this impact, SMCP continues its restructuring plan and expansion into emerging markets in India, Indonesia, and the Philippines while reducing its presence in China with the aim of closing up to 100 stores over the next two years. In contrast, North America has shown positive performance, with a 6.6% increase in sales, driven by the Sandro and Maje brands. In Europe, the full-price strategy also resulted in an organic growth of 5.4%.
Despite the global economic uncertainty, SMCP remains confident in the Chinese market, adjusting its strategies to capitalize on future opportunities when demand recovers.
