By SMCP faced a decline in earnings in light of a difficult macroeconomic environment that is anticipated to persist into 2024. The French fashion conglomerate, known for brands such as Sandro, Maje, Claudie Pierlot, and Fursac, disclosed sales figures for 2023 amounting to 1.23 billion euros ($1.33 billion), up from EUR1.205 billion the previous year.
Financial Performance
Earnings before interest and taxes saw a decrease to EUR76.5 million from EUR104.9 million in 2022, with net income also experiencing a decline to EUR11.2 million from EUR51.3 million in the prior period. The company attributed this downturn to the challenging economic landscape characterized by dwindling consumer spending and rising inflation.
Strategic Actions
In response to these challenges, SMCP announced an action plan aimed at revitalizing profitable growth. This initiative includes the closure of less profitable points of sale, particularly 15% of the network in China, to enhance retail efficiency alongside stringent inventory management practices.
Future Outlook
Despite the uncertainties surrounding consumer demand, SMCP refrained from offering financial guidance for 2024. However, the company anticipates reaping the benefits of its action plan by 2024, with further acceleration expected from 2025 onwards.
Considering the dynamic nature of the current economic landscape, SMCP remains steadfast in its commitment to navigating these challenges and fostering a path towards sustainable growth.
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