France's SMCP SA H1 profit jumps 52% on cost control, confirms FY outlook
France's SMCP SA H1 profit jumps 52% on cost control, confirms FY outlook
Overview
France premium fashion group's H1 sales were flat as growth abroad offset France decline
Adjusted EBIT for H1 rose 25% yr/yr; net profit increased 52%
Company launched share buyback mandate for up to 970,000 shares
Outlook
SMCP confirms 2026 targets for adjusted EBIT margin and free cash flow generation
Company expects adjusted EBIT margin to reach around 10% of sales in H2 2026
SMCP anticipates €50 mln free cash flow generation for full yr 2026
Result Drivers
REGIONAL PERFORMANCE - Growth in America and EMEA offset declines in France, which was affected by weak consumption and store closures
FULL-PRICE STRATEGY - Improved gross margin was driven by a lower average discount rate and focus on full-price sales
COST CONTROL - Profitability was supported by strict control over operating expenses and lower financial costs
Company press release: ID:nGNE3Gqjk2
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Sales |
| EUR 597 mln |
|
H1 Net Income |
| EUR 16.80 mln |
|
H1 Adjusted EBITDA |
| EUR 119.20 mln |
|
H1 Adjusted EBIT |
| EUR 53.20 mln |
|
H1 Free Cash Flow |
| EUR 3.50 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 €8.50, about 69% above its July 27 closing price of €5.03
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
July 27 - France's Dior H1 revenue falls amid Middle East conflict
July 27 - France's LVMH H1 revenue edges past estimates, aided by jewelry, Sephora strength
July 27 - As fashion stumbles, jewellery will help shape luxury's winners
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.)