As the coronavirus continues to wreak havoc across the world, SMCP, the group that owns Sandro, Maje and Claudie Pierlot, said the outbreak is significantly impacting sales and profitability in China — a key market for its contemporary French fashion labels — and weighing on other regions as well, due to the decline in Chinese tourists.
Since late January, SMCP has temporarily closed a large proportion of its stores in mainland China and Macau, with limited opening hours for boutiques that are open.
“While we cannot predict the duration of the crisis, we have been taking appropriate measures to mitigate the impact on our business,” said Daniel Lalonde, chief executive officer of the Paris-based company. The group also postponed its investor day to Sept. 30 from the initially scheduled April 2 date.
SMCP said it had performed strongly in the first three weeks of January in mainland China. Executives issued a profit warning in December, lowering their annual earnings margin target, citing lower foot traffic and store closures in Hong Kong.
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The French group has been rapidly expanding its store network abroad, particularly in Asia and the Americas, while downsizing its network in France.
Listed on the Paris stock exchange in 2017, SMCP is controlled by Chinese textile conglomerate Ruyi Group.
SMCP will publish annual results on March 25.
This story was reported by WWD and originally appeared on WWD.com.
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