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Introduction & Market Context
SMCP, the French luxury fashion group behind Sandro, Maje, Claudie Pierlot, and Fursac, reported modest growth in its Q1 2025 sales presentation on April 29. The company achieved 2.6% organic growth despite ongoing pressure on consumer confidence in key markets, with total sales reaching €297 million.
The Paris-based group’s stock (EPA:SMCP) closed at €3.02, up 2.65% following the results announcement, suggesting investors responded positively to the company’s performance in a challenging retail environment.
Quarterly Performance Highlights
SMCP reported Q1 2025 sales of €297 million, representing a 2.6% organic increase and a 1.8% like-for-like growth compared to the same period last year. The company maintained its strict full-price strategy across all regions and channels, reducing discount rates by 3 percentage points versus Q1 2024, which management indicated is supporting gross margin improvement.
As shown in the following sales bridge chart, the growth was primarily driven by comparable sales (+€4m) and wholesale performance (+€8m), partially offset by the company’s network optimization initiatives (-€6m):
The company continued its network optimization strategy, ending the quarter with 1,640 points of sale, a net reduction of 22 locations since the end of 2024. This included specific optimization of Claudie Pierlot in Europe and approximately 10 store closures in Canada, in line with the company’s retail partner plan in key markets.
Regional Performance Analysis
SMCP’s performance showed significant geographic divergence, with European markets delivering solid results while Asia-Pacific continued to struggle. The company’s sales breakdown reveals a balanced portfolio across regions, with France and EMEA each representing approximately one-third of total sales.
As illustrated in the following regional performance breakdown, France and EMEA were the primary growth drivers, while APAC remained challenging:
European markets showed particularly strong momentum. France delivered 4% organic growth to €102.1 million, driven particularly by the Sandro brand. EMEA markets performed even better with 9% organic growth to €98 million, with the company noting strong performance across all key markets in the region.
The detailed European performance metrics demonstrate the strength in these core markets:
Meanwhile, the Americas region showed resilience with 2% organic growth to €43.9 million, maintaining the company’s brand strength in the U.S. market despite challenging conditions.
The most significant challenge remained in the Asia-Pacific region, where sales declined by 10% organically to €52.7 million. Management indicated that its strategic plan for China is "starting to show results," suggesting the company sees early signs of improvement despite the continued negative growth:
By brand, Sandro remained the group’s largest contributor at 50% of sales, followed by Maje at 37% and other brands (Claudie Pierlot and Fursac) at 13%. Sandro showed the strongest performance with 4.2% organic growth, while Maje grew by 0.8% and other brands by 2.3%.
Strategic Initiatives
SMCP continued to execute on several strategic initiatives during the quarter. The company maintained its focus on full-price sales, which management believes will drive gross margin improvement. The network optimization strategy remained a priority, with the company selectively reducing its store count while expanding through key partnerships in growth markets.
The presentation highlighted several new partner openings, particularly in emerging markets. In India, SMCP expanded both its brick-and-mortar presence with stores at Jio World Drive in Mumbai and its digital reach through a partnership with AJIO LUXE:
Additional partner openings included locations at Solitaire Mall in Riyadh, Saudi Arabia, and Ciputra World in Surabaya, Indonesia, demonstrating the company’s continued focus on expanding its presence in high-growth markets through strategic partnerships.
SMCP also emphasized progress on its ESG roadmap, with 65% of its Fall/Winter 2024 collection exceeding regulatory requirements (a 15 percentage point increase versus 2023), 54% of materials now certified (up 11 percentage points), and 66% of products having lower environmental impact (up 14 percentage points). The company reported approximately 20% reduction in CO₂ emissions over two years and a 24% reduction in water consumption related to product manufacturing versus 2022.
Forward-Looking Statements
Looking ahead, SMCP management expressed confidence in the strength of its brands while acknowledging several exogenous factors requiring prudence, including macroeconomic volatility and tariffs. The company emphasized its focus on operational discipline, sound cash management, and agility in responding to market conditions.
The company reaffirmed its upcoming financial publication dates, with the annual shareholders meeting scheduled for June 12, 2025, half-year results on July 29, 2025, and third-quarter sales on October 23, 2025.
In its conclusion, management highlighted continued market share gains in Europe, early positive signs from its China strategic plan, confirmed brand strength in the U.S., and enhanced overall brand desirability and momentum. These factors, combined with the company’s disciplined operational approach, form the basis of SMCP’s strategy to navigate the challenging consumer environment through 2025.
Full presentation:
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