PARIS – SMCP reported a slight decline in first-quarter sales as disruption among wholesale partners including department stores such as BHV in France and Saks in the U.S. weighed on performance, offsetting growth in other regions.
The Paris-based group, which owns Sandro, Maje, Claudie Pierlot and Fursac, posted revenue of 287 million euros in the three months to March, down 0.8 percent on an organic basis year-over-year.
The decline was driven by a 13 percent drop in France to 89 million euros, where the company has been grappling with a weak consumer environment and the fallout from its exit from locations operated by Société des Grands Magasins, owner of BHV.
SMCP already saw sales flatline in its home market in the fourth quarter, when sales in France fell 8.7 percent following the closure of 26 points of sale tied to BHV stores, after several brands cut ties with the retailer amid its partnership with Shein.
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The loss of that major retailer, alongside renovations of key Sandro flagships in Paris, dragged on sales, the company said, while a reduced contribution from post-holiday January markdowns in line with SMCP’s full-price strategy further weighed on performance.
The company continued to scale back discount activity, particularly at Claudie Pierlot, as it works to rebrand as simply Claudie and elevate brand positioning.
In the United States, the group closed Saks corners during the quarter following bankruptcy proceedings at Saks Fifth Avenue, contributing to a reduction in its global store network to 1,587 points of sale.
Despite the Saks closures, the Americas were the fastest-growing region, with sales rising 11.7 percent to 44 million euros, driven by strong performance at Maje and Sandro. South America, where the company recently opened stores in Argentina, Chile as well as a flagship in Mexico, gave an added sales boost.
Europe, the Middle East and Africa were up 4.9 percent to 103 million euros. Southern Europe and Germany were key drivers, while markets such as Turkey and the Balkans, where the group works with local partners, were positive.
In Asia-Pacific, sales rose 2.6 percent to 51 million euros, marking a return to growth after a weak fourth quarter. In China, where the group has reduced its store network and tightly controlled its discount rate, like-for-like sales increased. Elsewhere in the region, markets such as Malaysia, Thailand and Vietnam remained strong, the company said.
The group undertook a “significant network adjustment” in South Korea, closing 24 points of sale following a change in local partner, as part of efforts to reinforce its full-price positioning.”
SMCP said its Middle East business has so far remained insulated from geopolitical disruption, though it is monitoring potential knock-on effects on tourism and consumer spending.
Foreign exchange also weighed on reported performance in the first quarter, with a negative impact of 2.4 percentage points.
Chief executive officer Isabelle Guichot said the results reflected the group’s resilience in a challenging environment, pointing to continued momentum outside its domestic market.
“In the first quarter of 2026, the group demonstrated resilience in a challenging environment,” Guichot said in a statement, adding that subdued consumer demand in France since last September, combined with network changes and lower promotional activity, had weighed on the results.
The company has been sticking to its full-price strategy, reducing its average discount rate by two percentage points compared with a year earlier, as it seeks to strengthen overall brand reputation and positioning, as well as improve margins.
The strategy comes as SMCP continues to rebalance its distribution, following its withdrawal from certain wholesale partners and efforts to reposition its store network. The group has previously said it is exploring alternative ways to serve cities where it closed locations, including digital and pop-up retail formats.
Maje was its strongest label in the quarter, with sales up 5 percent on an organic basis. Its flagship brand Sandro saw sales dented 1.4 percent on an organic basis, while the “other” category — which includes Claudie and its men’s brand Fursac — saw sales fall 15 percent in the quarter.
Looking ahead, the company maintained its full-year outlook, targeting an adjusted EBIT margin of around 10 percent in the second half and free cash flow of 50 million euros for 2026.
The results come as SMCP remains up for sale, with key shareholders seeking to divest up to 51.2 percent of its share capital in a process led by Lazard. The potential transaction follows years of shareholder disputes linked to the collapse of former majority owner Shandong Ruyi, and could trigger a takeover offer if a buyer acquires a controlling stake.
