France · Delayed Price · Currency is EUR SMCP S.A. Earnings Call Transcripts
Fiscal Year 2025
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Nine-month sales rose 2.8% at constant FX, with strong growth in EMEA and America, while Asia declined due to network optimization. Q3 saw continued margin protection via reduced discounting and positive like-for-like in key regions. Debt reduction and cost control remain priorities.
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H1 2025 delivered a strong recovery with 3% revenue growth, doubled EBIT margin, and a return to net profit, driven by robust performance in Europe and America, record free cash flow, and successful network optimization. Expansion and brand elevation continued, with positive outlook despite external uncertainties.
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Q1 2025 sales rose 2.6% at constant FX, with growth in all regions except Asia due to network optimization. Gross margin improved from lower discounting and price increases, while store closures were offset by new partner openings. Management remains cautious amid macro and tariff uncertainties.
Fiscal Year 2024
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2024 saw resilient sales and improved profitability despite macroeconomic headwinds, with strong cash flow reducing net debt. Network optimization, especially in China, and expansion through partners support future growth, with midterm targets reaffirmed.
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Nine-month sales declined 2.7% at constant exchange rates, mainly due to China, but excluding China, sales rose 1.4% with Sandro and Maje performing well. Network optimization and sustainability initiatives progressed, while EBIT margin for 2024 is expected to be above H1 but below 2023 due to restructuring costs.
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Sales declined 3.6% year-over-year to €585 million, mainly due to China, but gross margin improved and net debt fell below €300 million. Store closures in China continue, with H2 expected to benefit from favorable comps and strong new collections.