Sharp market deterio ration in Hong-Kong SMCP adjusts its 201 9 adj . Ebitda mar gin tar get and confirms it s full-year sales growth out look
SMCP today announces an adjustment to its adj. 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. This deterioration is expected to have a strong impact on the Group’s Ebitda margin. To a lesser extent, the weaker than expected performance of Claudie Pierlot, which is much less exposed to fast growing international markets, will also affect the Group’s margin.
In all other geographies and brands, the Group has been delivering according to plan, including a positive like-forlike sales growth in Q3 19 as well as in Q4 to date, and a continuously strong performance in Mainland China.
As a result, SMCP now expects to deliver an adj. Ebitda margin1 of between 15.5% and 16.0% in 2019 and reconfirms its full-year sales growth target.
Looking forward, 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.
A conference call to investors and analysts will be held today by Daniel Lalonde, CEO, and Philippe Gautier, CFO and Operations Director, at 9.00 a.m. (Paris time).