France's SMCP Q3 sales fall on weak demand
France's SMCP Q3 sales fall on weak demand
Overview
France premium fashion group's Q3 sales declined 2% organically amid softer consumer demand
Company's nine-month sales remained broadly stable, with growth in America and EMEA offsetting France decline
Q3 performance impacted by weak demand in France and store network contraction
Outlook
SMCP confirms 2026 objectives, assuming no further significant deterioration in France trading conditions
Result Drivers
AMERICA AND EMEA GROWTH - Co said Q3 sales growth in America and EMEA helped offset declines elsewhere, with America up 4.3% and EMEA ex-France up 2.5% organically
FRANCE WEAKNESS - Co attributed Q3 sales decline in France to weak consumer demand and store closures, particularly the closure of BHV-SGM corners
FULL-PRICE STRATEGY - Co said it maintained a strict full-price strategy, reducing average discount rates across all regions, aiming to support brand desirability
Company press release: ID:nGNE9QXKt1
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales |
| EUR 291 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
Wall Street's median 12-month price target for SMCP SA is €8.75, about 61.9% above its October 21 closing price of €5.41
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
Oct 21 - France's Fnac Darty says around 12 stores hit in weekend unrest
Oct 21 - Carrefour heads for biggest-ever drop as French riots trigger forecast cut
Oct 21 - Strong earnings help European shares erase nearly all losses from French unrest
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)