SMCP slumps after 2023 guidance cut as growth slowdown weighs

Smcp SA

19/09/2023 08:33

** Shares in SMCP  SMCP.PA  are down 23%, set for the worst
day since Dec 2019, after the company cut its 2023 guidance on
the back of growth slowdown in Europe
    ** The French fashion group now expects a mid-single digit
growth of sales at constant currencies for 2023, versus "mid- to
high- single digit sales growth" previously
    ** SMCP says since end-July publication, market conditions
have deteriorated overall, pointing out a slowdown of growth in
Europe as well as Chinese consumption falling short on
expectations
    ** "This was quite predictable given the deterioration of
momentum in China and the fact that the group had already had a
rather low margin in H1, therefore leaving little room for
maneuver," says an ODDO BHF analyst
    ** Including today's move, the stock is down 38%
year-to-date

 (Reporting Clement Martinot)
 ((Clement.martinot@tr.com))