Fashion

SMCP adjusts outlook amid sharp market decline in Hong Kong


SMCP adjusts outlook amid sharp market decline in Hong Kong

SMCP, parent company of brands Sandro, Maje, Claudie Pierlot and De Fursac has announced an adjustment to its adjusted Ebitda margin objective for 2019 mainly due to the sharp market deterioration in Hong Kong triggered by a significant drop in traffic and temporary store closures over the past few weeks. The company said in a statement that also weaker than expected performance of Claudie Pierlot, which is much less exposed to fast growing international markets, will also affect the group’s margin. As a result, SMCP now expects to deliver an adjusted Ebitda margin of between 15.5 percent and 16 percent in 2019.

In all other geographies and brands, the company added that the group has been delivering according to plan, including a positive like-for-like sales growth in Q3 19 as well as in Q4 to date, and a continuously strong performance in Mainland China.

Looking forward, the company further said, SMCP is closely monitoring the evolution of market trends in Hong Kong and taking all appropriate measures to mitigate the impact such as selectively optimizing its store network. Overall, SMCP remains strongly committed to delivering its strategic roadmap and foresees significant growth potential of its brands both in terms of like-for-like and worldwide expansion.

Picture:Facebook/Claudie Pierlot



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