SMCP records strong profitability in H1 driven by strict full-price strategy

French fashion group SMCP announced its consolidated financial results for the first half ended June 30, 2026. The Paris-based parent company of Sandro, Maje, Claudie Pierlot, and Fursac recorded net sales of 597 million euros (680.7 million dollars), representing an organic growth of 0.6 percent compared to 601.10 million euros in the prior-year period.

Reported group net income surged 52 percent to 16.80 million euros, up from 11 million euros in H1 2025. The profitability expansion was supported by a management gross margin ratio of 76 percent, driven by a strict full-price strategy that reduced the average discount rate by two percentage points. Adjusted EBIT increased 25 percent year-over-year to 53.20 million euros. The adjusted EBIT margin expanded by 1.80 percentage points to 8.90 percent of sales.

SMCP chief executive officer, Isabelle Guichot, stated: “In the second quarter, our momentum strengthened, supported by solid growth in the Americas and EMEA, a confirmed return to growth in Asia-Pacific, and an improving trend in France despite a cautious consumer environment. These results demonstrate the relevance of our strategy and the quality of its execution across all our markets”. Guichot added that the business delivered a strong improvement in profitability while maintaining disciplined execution to support brand desirability.

Maje and regional expansion drive second quarter rebound

Trading momentum accelerated in the second quarter, with sales reaching 309.80 million euros, up 2 percent on an organic basis compared to 304.50 million euros in Q2 2025. Like-for-like sales rose 3.90 percent during Q2, contributing to a positive LFL growth of 1.60 percent for H1 overall.

Across product lines, Maje recorded organic sales growth of 5.20 percent during H1 to reach 232.60 million euros. Sandro maintained momentum with 299.60 million euros in sales, reflecting organic growth of 0.70 percent. The segment comprising Claudie Pierlot and Fursac generated 64.70 million euros, declining 13.20 percent organically due to network optimization and reduced off-season inventory liquidation.

Geographically, sales in the Americas grew 11 percent organically in H1 to 97.70 million euros, while Europe, Middle East, and Africa (EMEA), rose 7 percent organically to 218 million euros. Asia Pacific returned to organic growth, rising 1.90 percent to 96.60 million euros. Conversely, sales in France fell 10.80 percent organically to 184.80 million euros amid a subdued consumer climate and store network contraction.

Debt reduction and confirmed full year outlook support profitability

Disciplined capital allocation enabled the group to reduce its net debt to 144.60 million euros as of June 30, 2026, down 30 percent from 205.60 million euros a year earlier. During the period, SMCP fully repaid its remaining 42 million euros state-guaranteed loan and extended the maturities of its term loan and revolving credit facility to May 2028.

The retail estate encompassed 1,589 points of sale at the end of June 2026. On July 28, 2026, the board of directors authorized a share buyback program of up to 970,000 shares between July 30, 2026 and October 30, 2026 to cover employee long-term incentive plans.

Management reconfirmed its full year 2026 financial targets, including an adjusted EBIT margin of around 10 percent in the second half and full year free cash flow generation of 50 million euros.