SMCP Sales Slip in Q4 as Exit From BHV Weighs on France

PARIS — French modern conglomerate SMCP posted weaker fourth-quarter income arsenic its exit from BHV, pursuing the section store’s woody with Shein, weighed connected show successful its location country.

The group’s income dipped 1.2 percent astatine changeless currency to 322 cardinal euros aft shuttering 26 points of merchantability crossed its brands — Sandro, Maje, Claudie Pierlot and Fursac — successful each section stores owned by BHV genitor institution Société des Grands Magasins crossed the state successful the 3 months to Dec. 31.

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“It was a spouse with whom we had recurring unpaid invoices for respective months,” SMCP main enforcement serviceman Isabelle Guichot said successful a telephone with journalists. “And clearly, determination were strategical differences regarding the attack and the benignant of customers those stores wanted to attract.”

SMCP’s unchangeable of brands were among the high-profile manner and quality companies to exit partnerships with SGM aft Chinese ultra-fast-fashion elephantine Shein opened its archetypal carnal store worldwide wrong BHV Marais.

Sales successful France were down 8.7 percent to 107.3 cardinal euros, with a akin percent driblet successful the Asia-Pacific portion to 46.1 cardinal euros successful the 4th quarter.

Guichot added that SMCP is re-evaluating its web to “tactically redeploy” successful the cities wherever it closed doors past year.

“We are actively evaluating solutions,” she said. “These could beryllium carnal solutions, impermanent solutions, oregon integer solutions. We’re studying each options. Of course, we proceed to service these cities via integer channels.”

Europe extracurricular of France was a brighter spot, with income up 6.9 percent to 116.2 cardinal euros. The institution sees enlargement successful the Balkans and Eastern Europe arsenic cardinal maturation markets.

The Americas were a mixed container successful the 4th quarter. Sales successful the portion were up 8.7 percent connected an integrated ground to 52.3 cardinal euros, but were down 1.2 percent connected a reported ground owed to currency fluctuations.

Broken down by brand, income astatine SMCP’s flagship marque Sandro were down 1.1 percent astatine changeless currency to 161.1 cardinal euros successful the 4th quarter, portion its sister marque Maje rang up income of 124.9 cardinal euros for an uptick of 1.6 percent astatine changeless currency rates.

Sales for Claudie Pierlot and Fursac are not breached down separately, but combined, the 2 brands saw income driblet a steep 9.9 percent astatine changeless currency to 35.9 cardinal euros successful the 4th quarter.