SMCP: Full year 2017 sales

Very strong growth of +16.0% and +17.5% at constant currency
 2017 Sales reach €912M exceeding objectives

2017 EBITDA margin guidance confirmed

Paris, 30th January 2018

• Outstanding sales growth in FY 2017 of +16.0% to €912m (+17.5% at constant currency) above the 2017 €900M objective. Another year of strong balanced growth driven by store openings and like-for-like growth that reaches +7.8%.
• Very dynamic performance across all brands and regions in 2017 outpacing the market, with further market share gains in France and international sales up +27.1% (+29.9% at constant currency), reaching 59% of total sales.
• Continued strong growth in Q4 at +14.1% to €256m (+16.8% at constant currency).
• Sustained footprint expansion with +37 net POS in Q4, representing +109 net opening in 2017. Network reached 1,332 POS in 38 countries.
• Digital sales up +46% reaching 12% of total sales. 
• Confirmation of full-year 2017 guidance on EBITDA margin of 16.5% as well as on capex and net leverage.

SMCP, a leader in the global accessible luxury market with its three brands Sandro, Maje and Claudie Pierlot, reports its 2017 full year and fourth-quarter sales figures today.
Commenting on the report, Daniel Lalonde, SMCP's Chief Executive Officer, stated: "SMCP has once again posted a fantastic year in terms of net sales and strategic network expansion across all regions and brands. We have opened doors in prestigious locations, set foot in new territories, further developed our omnichannel services, launched new ecommerce sites and have kept offering amazing collections throughout the year. This has been achieved thanks to the great work of our talented and passionate teams constantly working on further building the desirability of our three brands.

This success confirms the relevance of our business model and strategy focusing on pursuing organic growth, expanding our network in our key markets, accelerating on digital, menswear and accessories. We have exceeded our yearly growth objective and we confirm our full-year 2017 guidance on EBITDA margin."

Continued strong growth in Q4

The Fall Winter collections of SMCP's brands were very well received in all regions: sales reached €256 million, up +14.1%. This strong performance was achieved thanks to a very dynamic performance over the holiday season and despite tough market conditions in October. Exchange rates had a similar impact in Q4 than in the previous quarter and growth at constant currency reached 16.8%.

Over the last three months, SMCP continued to pursue its international expansion with +37 net POS including notable opening such as K11 in Shanghai for both Sandro and Maje, a free-standing store in Milan for Claudie Pierlot, Maje at the famous Venetian in Macau as well as Sandro and Maje in the upgraded Century City, LA.

In October, SMCP successfully unveiled its Sandro and Maje eyewear collections at the prestigious Silmo eyewear show.

The fourth quarter also saw further development of our omni-channel services, including the full roll out of store-to-web for Maje in France.

2017 sales growth driven by all regions and brands

Dynamic growth across all international regions

• The growth in APAC² was outstanding at +40% in 2017. Greater China drove the point of sales growth with +37 net openings out of the +50 across the region. 2017 saw the opening of 5 new cities in Mainland China: Wuhan, Xian, Kunming, Harbin and Jinan - bringing to 21 the number of cities where the group is present in Greater China - as well as the launch of Taiwan as a direct market. Sandro and Maje also opened their direct e-commerce sites in China.
• In EMEA¹, the Group's very strong performance of +24% over the past year was achieved across all strategic markets. SMCP continued its footprint expansion with +48 net openings in 2017, mostly in Italy and Germany.
• In Americas, SMCP achieved an outstanding performance of +18% in 2017, across all channels thanks to the Group's unique business model. SMCP continued its network expansion with +15 net openings in 2017.
• In France, SMCP has gained further market shares and recorded a solid performance at +3% in 2017, overperforming the French market that stagnated in 2017.

 Double digit growth across all brands

• Sandro performed outstandingly in 2017 with +21% thanks to the strong success of both Women & Men collections. Sandro's expansion (+53 net openings in 2017) included the opening of prestigious European doors.
• Maje recorded solid growth at +10% with a continued success of accessories and more specifically the leather goods. Maje's sustained its footprint expansion with +39 net openings notably supported by a dynamic door growth in Greater China.
• Claudie Pierlot's strong performance (+16% in 2017) is testament to the increasing brand awareness in EMEA, where the brand launched two new direct markets this year (Italy and Luxemburg). The brand reinforced its footprint with +21 net openings in 2017.

Outlook

The Group confirms its 2017 full year guidance on EBITDA margin of 16.5% as well as on capex and net leverage.

SMCP registered a satisfactory performance in January.

About SMCP

SMCP is a global player in the apparel and accessories market with three distinct contemporary Parisian fashion brands, Sandro, Maje and Claudie Pierlot. End of 2017 SMCP brands are present in more than 1,300 points of sales in 38 countries. Evelyne Chetrite and Judith Milgrom founded Sandro and Maje in Paris, in 1984 and 1998 respectively and continue to provide creative direction for the brands. Claudie Pierlot was founded in 1984 by Madame Claudie Pierlot, and acquired by SMCP in 2009. SMCP is listed on the regulated market of Euronext Paris (compartment A, ISIN Code FR0013214145, ticker: SMCP).

Investors contact                                            Press contact

investor-relations@smcp.com                                           Brunswick - Hugues Boëton
                                                                                                +33 (0) 1 53 96 83 83
                                                                                                smcp@brunswickgroup.com

Disclaimer: Forward-looking statements

Certain information contained in this document may include projections and forecasts. These projections and forecasts are based on SMCP management's current views and assumptions. Such statements are not guarantees of future performance of the Group. Actual results or performances may differ materially from those in such projections and forecasts as a result of numerous factors, risks and uncertainties.
This document has not been independently verified. SMCP makes no representation or undertaking as to the accuracy or completeness of such information. None of the SMCP or any of its affiliates representatives shall bear any liability (in negligence or otherwise) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.
For more information regarding these factors, risks and uncertainties, please refer to the information contained in the documents filed with the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) as part of the regulated information disclosure requirements and available on SMCP's website (www.smcp.com).

Evolution of Net Sales