Fashion group SMCP inches up after sales beat

Smcp SA

02/08/2022 09:12

** Shares in French fashion group SMCP  SMCP.PA  are up 2.3%
after opening 6.2% higher following H1 sales beat, "significant"
margin progress  urn:newsml:reuters.com:*:nS8N2YE01L
    ** The owner of the Sandro fashion label on Monday reported
H1 sales of 565.4 million euros ($578.1 million), up 21%
organically, and adjusted EBIT of 45.2 million euros vs 25.7
million a year earlier
    ** Jefferies says H1 sales were a 3% beat against consensus
with strong improvements across most markets, highlighting
strong acceleration in both France and EMEA in Q2
    ** "We also were pleased to see significant progress in mgmt
gross margin driven by lower discounting," it adds
    ** However, the broker notes direct cost increases were
higher than anticipated and adj. EBIT a small miss -- "Two steps
forward, one step back," it says 
    ** Share price is at its highest since June 21, but down 23%
YTD

($1 = 0.9781 euros)

 (Reporting by Elena Vardon)
 ((elena.vardon@tr.com))