FY 2016 results

Increase in sales of +16.4% in 2016. SMCP outperforms its market and demonstrates again its strong growth potential.

• Total sales of €786M, almost doubled in three years
• Growth of +16.4%, driven by all brands and regions
• International sales increased by +24%, representing 54% of global sales
• Very good performance in e-commerce, reaching almost 10% of global sales

In 2016, Group sales reached €786M, representing a strong growth of +16.4%. Like-for-Like growth stands at +7.1%, on high comparisons basis, reflecting market share gains and an outperformance in comparison to the sector. This dynamic reflects the strong desirability of the brands Sandro, Maje, and Claudie Pierlot in France and around the world.

The profitability (EBITDA) increased by +22% reaching €130M, confirming the relevance of SMCP’s business model, and the successful execution of the Group’s strategy.

This strategy is based on like-for-like growth, through desirable collections, constant attention given to customer experience, as well as the expansion of the point of sale network, with 105 net openings over the year, mainly outside France. At the end of 2016, SMCP operated 1,223 points of sale and its brands were present in 36 countries.

Highlights of 2016

In France, the activity was dynamic with a +9% sales increase in a contracting market. Sandro, Maje and Claudie Pierlot are leaders in their segment and continue to gain market share.

In 2016, e-commerce sales grew by nearly +80% and represent nearly 10% of the Group’s revenues. The penetration rate of e-commerce is particularly high in the United States and in the United Kingdom where it exceeds 15%.

The Group’s digital strategy was especially illustrated by the launch of two dedicated websites in China (Sandro and Maje on Tmall.com) and the strengthening of the Group’s e-commerce relations with department stores. SMCP is enriching its omnichannel strategy, notably thanks to services such as click & collect and the e-reservation that the Group is currently deploying.

The development of the accessories range is part of the Group’s objective to make Sandro, Maje and Claudie Pierlot global lifestyle brands. 2016 was marked by the success of the “M” bag, Maje’s hit bag. Sales of accessories rose sharply with +42% over the year.

Sandro Homme confirmed its potential in an increasingly dynamic menswear market. In 2016, the new concept for Sandro Homme stores was deployed, notably in France, Italy and Greater China.

Finally, the Group’s international targeted expansion continues with the stated goal to develop the potential of brands in the world’s largest cities and the most prestigious avenues. 90 openings were made internationally this year. Among the most notable are those on the Hong Kong Fashion Walk, on Yorkdale Mall in Toronto, on Via Frattina in Rome and on Via Roma in Florence, Italy.