SMCP Group Expects Sales Growth To Slow In Fiscal 2019.

The French fashion group SMCP of Shandong Ruyi Holdings (Sandro, Maje, Claudie Pierlot and other fashion brand's parent companies) announced the financial data for the 2018 fiscal year, and the forecast for the 2019 fiscal year.

The Group expects growth in fiscal year 2019 to slow down due to the continuation of the protest campaign of the French yellow vest and the impact of Britain's de Europe.

In the 2018 fiscal year ending December 31st, the key financial data of SMCP group are as follows:

Sales grew by 11.5% to 1 billion 17 million euros, up 13% from the same rate of exchange, compared with 912 million euros in the same period last year.

Digital channel sales accounted for 14.7% of total sales, an increase of 2.6 percentage points over the same period last year.

EBITDA (profit before interest tax depreciation amortization) was 171 million euros, an increase of 11.6% over the same period last year.

Net profit of 50 million 200 thousand euros, the same period last year was 6 million 300 thousand euros.

The company has opened 134 new stores throughout the year, of which 102 are direct stores, exceeding the annual target.

In the same period last year, SMCP group's net profit was affected by IPO's one-time cost of 38 million 900 thousand euros, which is also the main reason for the substantial increase in net profit in the fiscal year compared with the same period last year.

SMCP group is expanding its distribution network in Asia and other European countries. In 2019, the group is expected to add more than 100 retail outlets, mainly in Asia and Europe.

But most of their sales still come from the French mainland, and the yellow vest protests since last November have had a serious impact on sales in France, especially in Paris.

CEO Daniel Lalonde of SMCP said: "the economic environment is somewhat unstable, especially in France.

Britain has also had a certain impact on Europe.

SMCP group predicts that the sales growth in the 2019 fiscal year will be between 9% and 11%, compared with the 13% in the 2018 fiscal year.

However, Daniel Lalonde revealed that in early 2019, the group's sales performance was good, and the Sino US trade war did not bring serious negative effects as many people feared.

After the announcement, SMCP group's share price fell to 14.51 euros per share on Thursday closing, or 9.3%.

Analysts at Jefferies, an investment bank, say SMCP's prediction is "disappointing".

In fiscal year 2018, SMCP's performance in various regions and its brands is as follows:

By Region:

Sales in France dropped 0.5% to 375 million euros, down 0.5% from a year earlier, unchanged at 377 million euros a year ago.

This performance was mainly caused by the negative impact of the "yellow vest campaign" which started in mid November, resulting in the closure of stores, the decrease of passenger flow, resulting in a loss of 4 million euros, but partly offset by strong electricity supplier business.

Sales of EMEA (Europe, Middle East and Africa) increased by 11.2% to 306 million euros, excluding France, which increased by 12% over the same period of last year, unchanged at 275 million euros in the same period last year.

This is mainly due to the abnormal warm air temperature in winter, which has delayed the pition from most areas to the autumn and winter series.

Sales in the Americas increased by 24.7% to 134 million euros, up 30.4% from the same month, compared with 108 million euros in the same period last year.

This performance is mainly due to the popularity of digital strategy in the United States and the positive impact of the renovation plan launched by the end of 2016.

Sales in the Asia Pacific market increased 32.2% to 202 million euros compared to the same period last year, up 36% from the same month, up from 153 million euros a year earlier. This performance was mainly due to the fourth quarter growth in mainland China over 20% over the same period last year.

By brand:

Sandro sales increased by 9.7% to 500 million euros, up 11.4% from the same month, compared with 456 million euros in the same period last year.

Maje sales increased by 14.1% to 391 million euros, up 15.9% from the same month, compared with 343 million euros in the same period last year.

Claudie Pierlot sales increased 11.5% to 102 million euros, up 13% from the same month, compared with 91 million 240 thousand euros in the same period last year.