French Fashion Group SMCP Plans To List In Pan European Exchange In Paris

According to the world clothing shoes and hats net, Maje, Sandro and Claudie Pierlot are three luxury goods.

Brand of France

Group SMCP SAS SAS announced on Wednesday that it plans to go public in Euronext Paris Euronext.

The group did not give a timetable, saying only that trading depends on market conditions.

SMCP SAS also pointed out that IPO Shandong will continue to maintain its controlling shareholder status in Jining Ruyi.

The strategic support of Limited by Share Ltd (002193.SZ).

In April 2016, Shandong Ruyi bought the SMCP SAS 80% stake from the global private equity giant KKR & Co. LP (NYSE:KKR), continued the overseas acquisition boom of Chinese capital, KKR & Co. LP, reduced the shareholding ratio from 69.75% to 10%, and the SMCP SAS founder and management maintained 10% of the shares, which was reported to be 1 billion 300 million euros (including debt).

In March of this year, Shandong Ruyi bought the windbreaker Aquascutum Ltd. for $117 million.

KKR & Co. LP declined to comment on whether the remaining shares would be sold.

According to people familiar with the matter, SMCP SAS has entered a strong market and has a good momentum. Now it is a good time to list, and the group has always been a target for public companies, and is also confident that it can attract interest from French and international investors.

The group had been selling and preparing for IPO double track operation in 2015, and submitted an initial public offering registration document in March 2016 by AMF, the French financial market regulator.

Data showed that SMCP SAS growth slowed further in the second half of last year, reducing the annual revenue growth rate from 19.2% in the first half to 16.4%, far below 33% in 2015, but the Group CEO and CEO Daniel Lalonde believes that the performance has been excellent last year, after all, it was very strong in 2015, and last year's data exceeded the five year plan.

He still expects the fast fashion supply chain to support 150-250 euros of light luxury clothing business practices that will enable the group to break through 1 billion euros in revenue before 2019.

In 2016, revenues rose from 675 million euros in 2015 to 787 million euros, and nearly doubled in the past three years.

The core profit, EBITDA, was also increased from 107 million euros to 130 million euros, an increase of 22%, but only half of the previous year's 44% and EBITDA's profit margin of 16.5%.

Same store sales growth also dropped to a single digit, narrowing from 11% in 2015 to 7.1%.

Last year, the international market accounted for 54% of the global sales of SMCP SAS, and its revenue increased by 24% annually, of which Asia increased by 45% over the whole year. Europe and America recorded a 20% and 13% increase respectively; the French domestic market also achieved an impressive 9% growth.

Daniel Lalonde pointed out that Paris fashion style of group brand is very popular in China, which is one of the reasons why SMCP SAS can continue to record high growth.

Maje, Sandro and Claudie Pierlot also continue to accelerate the layout of the Chinese market. As of the end of last year, the three brands have 67 stores in China, and Maje and Sandro have landed in Tmall in the first half of the year.

Daniel Lalonde revealed that the Independent E-commerce website of Maje and Sandro will also be launched in China this year, which is very important for brand image and customer experience. He also stressed that Tmall has a significant role in promoting passenger flow and will remain the main force of domestic online sales in the future.

In 2016, the growth rate of e-commerce reached 80%, contributing 10% of the revenue to the group, representing a significant increase of 6.2% compared to 2015. Daniel Lalonde expects to further increase this figure to 15%.

Last year, SMCP SAS SAS opened 105 new stores, originally planned for 80-100. By the end of the year, the group had 1223 sales outlets in 36 countries and regions.

This year's global expansion will be more radical, with 100-125 new stores expected to be added to major cities.

Daniel Lalonde points out that the growth potential of the group is great, but they are very cautious and selective about investment.

Evelyne Ch trite and Judith Milgrom sisters founded Sandro and Maje in 1984 and 1998. They purchased the brand name Claudie Claudie, which was founded in 1984 in 2009, and formed SMCP SAS in 2010.

LVMH Mo t Hennessy Louis Vuitton SE (LVMH.PA) at that time, the investment organization L Capital and Florac jointly purchased and divided the shares of Capital 51% in November of the same year.

According to IPO tracking company Renaissance Capital data, the global IPO fundraising amount increased by 151.8% to US $24 billion 100 million in the first quarter of 2017, compared with only 9 billion 600 million US dollars in the same period last year.

During the period, the number of initial public offerings increased from 29 in the same period last year to 70. The average size of IPO shares was $197 million, and the best performance was consumer, technology and capital goods industries.

As for fashion and luxury goods industry, the most notable IPO this year is Canada's top down clothing brand Canada Goose Holdings Inc. (TSE:GOOS, NYSE:GOOS), Canada goose. The stock was listed in Toronto and New York in March 16th this year, at a price of $17 per share, equivalent to US $12.78, and it soared up to 41.1% to 23.98 Canadian dollars in the same day, with an increase of 26.6% throughout the day.

Canada Goose Holdings Inc. (TSE:GOOS) in June 7th hit a record high of 32.80 Canadian dollars. On Wednesday, 21, it closed up 7.6%, at 29.74 Canadian dollars, which has risen 74.9% since listing.

On the other side, Italy luxury group Valentino Fashion Group SpA, Valentino, thinks the market conditions are unfavorable, and the listing plan has been shelved repeatedly.

Group CEO Stefano Sassi Sassi said in March that it did not plan to go public in the year, and that IPO would be reassessed if the environment changed. However, there was no internal discussion at present, and in 2018 it was still necessary to look at the situation.

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