Shares of SMCP saw an increase after the company announced that it anticipates reaping the rewards of its cost-saving plan in the fourth quarter. Furthermore, the company affirmed its 2023 guidance.
As of 1055 GMT, shares were up by 7.7% to EUR3.21, though still below their level prior to a profit warning issued last month.
SMCP, the French fashion group renowned for its Sandro, Maje, Claudie Pierlot, and Fursac brands, expressed satisfaction with the progress of its cost-saving initiatives. Despite operating in a competitive environment, the company remains steadfast in its full-price strategy and is focused on maintaining control over inventory levels and liquidity.
Chief Executive Isabelle Guichot remarked, “This action plan is starting to bear fruit, and we expect to see an increasing impact in the fourth quarter.”
SMCP has confirmed its 2023 guidance, which was revised downward last month.
During the third quarter, sales amounted to 294.9 million euros ($311.6 million), representing a decline of 4.4% compared to the same period last year. On an organic basis, quarterly sales were down by 2%.
While SMCP observed a consumption slowdown across Europe, America, and China during the third quarter, they noted an upward trend in other Asian markets.
