By Shares of SMCP, the French fashion company, took a hit as it announced that it failed to meet its guidance for 2023 due to challenges faced in Europe and China in the fourth quarter.
Share Price Decrease
As of 0925 GMT on Monday, SMCP shares dropped by 11% to EUR2.55, marking a decline of nearly 64% compared to the same time last year.
Sales Performance
While SMCP reported stable sales in the fourth quarter, it faced difficulties in December, particularly in Europe (especially France) and China, which led to a failure in meeting the company’s 2023 guidance.
Full Year Results
SMCP revealed that total sales for the year grew by 3.8% to reach 1.23 billion euros ($1.34 billion) compared to the previous year. However, this fell short of the estimated mid-single digit growth.
Adjusted Earnings Before Interest and Taxes (EBIT) Margin
The adjusted EBIT margin for SMCP ranged from 6.4% to 6.6%, whereas the company had previously anticipated a margin of 7% to 9%.
Future Announcement
The full results for 2023 will be published by SMCP on February 28th.
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