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:

Key Details

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

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• Oct 21 - Strong earnings help European shares erase nearly all losses from French unrest

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(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.)