Shandong Ruyi Banner Light Luxury Group SMCP Assault Police

French light luxury fashion group SMCP SA (SMCP.PA) suddenly cut the full year profit forecast on the basis of the sharp deterioration of the Hongkong market, resulting in the stock price more than 25%.
SMCP SA, which owns Sandro, Maje and Claudie Pierlot, pointed out in a press release that the passenger flow in Hongkong has plummeted in the past few weeks and that some stores need to be temporarily closed. It is expected to have a significant impact on the adjusted EBITDA profit rate in fiscal year 2019. On the other hand, the profit margins will also be weakened due to the slower performance of Claudie Pierlot in the high growth international market.
SMCP SA currently has 18 stores in Hongkong, which do not include the Sandro flagship store of Jiulong city. Hongkong media said that the shopping mall affiliated with Mapletree North Asia Commercial Trust of Singapore real estate investment trust was smashed up in November and will be reopened until the first quarter of 2020.
SMCP SA chief financial officer Philippe Gautier previously revealed that Hongkong accounted for only 4% of global revenues, but did not provide specific sales trends. The world's largest luxury group LVMH Mo t Hennessy Louis Vuitton SE (LVMH.PA) road Vimin Hin 8, September, Hongkong's revenue dropped 40%, Tiffany & Co. (NYSE:TIF) Tiffany local sales in the three quarter slump 49%, the Hongkong market has also become one of the main reasons why the Hugo market once again issued a profit warning.
SMCP SA now expects the adjusted EBITDA margin for the whole year to be between 15.5%-16.0%, which was expected to remain unchanged at 16.9% in fiscal year 2018, while the target of fixed exchange rate earnings growth 9%-11% remained unchanged. The group stressed that the positive growth of comparable sales in the three quarter continued to the four quarter to date, and the strong performance of mainland China has been maintained.
In today's press release, the group did not mention the French domestic market facing enormous worries. The national strike, which began on Thursday, has almost completely paralyzed public transport, and the yellow vest campaign is expected to come back. The Eiffel Tower in Paris has been closed as a whole, and shops on both sides of Champs Elysees have been closed down, with riot police searching backpack for pedestrians on the road.
France, which accounts for 1/3 of revenue, is still the largest single market of SMCP SA. France's fixed exchange rate recorded a 1.1% year-on-year decline in the first nine months of this year, and the group closed six stores in the three quarter as the local women's wear market continued to shrink.
SMCP SA (SMCP.PA) closed at a record low of 8.02 euros on Friday, dropping 25.3% in the whole day, and its market value dropped to about 6.2 in euros.
As of March 31, 2019, Shandong Ruyi Technology Group Co., Ltd. (hereinafter referred to as "Shandong Ruyi") and other investors held a total of SMCP SA 53.7% shares. S & P global rating announced today that Shandong's CCC+ credit rating was withdrawn at the request of Ruyi, which fell to $0.15 and $0.10 respectively in December 19th and due in 2020.
S & P pointed out that before the withdrawal of the rating, the company's credit outlook was "negative". Moodie also expressed "very worried" about Shandong's willingness to repay loans. The company acquired Jining City Construction Investment Co., Ltd. in October to acquire 26% stake in 3 billion 500 million yuan, making the state-owned enterprise the second largest shareholder.
Shandong Ruyi chairman Qiu Yafu, in order to build the Chinese version of "LVMH", has spent more than 4 billion dollars in recent years to buy SMCP SA, the 100 century brand Acquascutum of the United Kingdom, Acquascutum, Hongkong high-end men's wear group, Li Bang Holdings Limited (0891.HK) and Bally barley and other fashion luxury businesses. This year, it also acquired the clothing and advanced fabric business of the polymer and fiber comprehensive production giant of the United States, and acquired the brand portfolio including LYCRA lycra and COOLMAX.