SMCP S.A.
TypePublic (Société Anonyme)
Euronext Paris: EN
IndustryFashion
Predecessors
Founded2010 (2010) in Paris, France
Founder
  • Évelyne Chetrite
  • Judith Milgrom
Headquarters49, rue Etienne Marcel,
Paris
,
France
Number of locations
1,684 (2021)
Area served
Worldwide
Key people
  • Isabelle Guichot (CEO)
  • Patricia Huyghues Despointes (CFO)
Products
RevenueIncrease €1.039 billion[1] (2021)
Increase €95.3 million[1] (2021)
Increase €23.6 million[1] (2021)
Total assetsIncrease €2.413 billion[1] (2021)
Total equityIncrease €1.122 billion[1] (2021)
Number of employees
6000[2] (2021)
SubsidiariesList of subsidiaries
Websitewww.smcp.com

SMCP Group, commonly known as SMCP, is a French holding company specializing in accessible luxury ready-to-wear, headquartered in Paris. The company was formed in 2010 through the merger of Sandro, Maje, and Claudie Pierlot. SMCP operates over 1,600 points of sale, including boutiques, flagships, and within high-end department stores, in 43 countries.[2] Isabelle Guichot has been the CEO of SMCP since August 2021.[3]

History

Founding

Prior to the founding of SMCP Group, Sandro, Maje, and Claudie Pierlot operated independently in the growing accessible luxury fashion niche in France.[2] Following the acquisition of Claudie Pierlot's eponymous label by sisters Évelyne Chetrite of Sandro and Judith Milgrom of Maje in 2009, Pierlot lost her long battle with cancer and died, leaving her label's future to the two sisters.[4] In 2010, SMCP S.A. was formed through the merger of Sandro, Maje, and Claudie Pierlot.[2]

Under private equity's control

In September 2010, L Capital, the private equity arm of French luxury conglomerate LVMH, purchased a 51 percent stake in SMCP Group.[5] The investment provided SMCP access to L Capital and LVMH's assets in the textile sector and experience working with rapidly expanding, formerly family-run brands.[5] In October 12, 2011, a Maje boutique opened in New York City, becoming the first SMCP store to open in the U.S. and marking the beginning of a period of rapid worldwide brick and mortar expansion.[6]

In March 2013, American private-equity firm KKR acquired a 65 percent stake in SMCP Group from L Capital and Florac for an estimated 650 million euros, becoming its majority owner.[7] The company grew steadily over the years and saw its revenue jumped 32 percent in the first half of 2015 amid a rapidly growing accessible luxury market.[8]

Acquisition by Shandong Ruyi

In April 2016, Chinese textile conglomerate Shandong Ruyi acquired a controlling interest in SMCP from KKR for an estimated 1.3 billion euros to take advantage of China's growing middle class and in hopes of one day becoming "a global leader in accessible luxury."[9] SMCP Group roughly doubled in size from 2013 to 2016.[10] The company saw a 19.2 percent growth in revenue in the first half of 2016, including an "explosive" 51% in Greater China, under new majority Chinese ownership.[11]

SMCP Group went public in October 2017 with IPO at 22 euros per share, giving the company a market capitalization of around 1.7 billion euros.[12] It was the second-largest IPO on the Paris stock market in 2017.[13]

In June 2019, SMCP acquired De Fursac, a French luxury menswear brand known for its expertise in tailoring.[14][15]

Claudie Pierlot, a subsidiary of SMCP, became the last brand in the group to ban the use of fur in its collection in spring 2020. Since then, SMCP has been a fur-free fashion group.[16]

Due to the COVID-19 pandemic, the group reported a 31 percent decrease in revenue and a loss of 88.5 million euros in the first half of 2020.[17] It quickly recovered and reported a profit of 600,000 euros or an increase of 89 million euros in the first half of 2021 compared to the same period in 2020.[18]

Recent developments

In October 2021, SMCP's majority shareholder European TopSoho, a Luxembourg-based subsidiary of Shandong Ruyi, defaulted on 250 million euros worth of bonds, angering institutional shareholders Blackrock and the Carlyle Group.[19] A 29 percent share of SMCP was taken over and sold by its creditors.[20] In January 2022, Blackrock, the Carlyle Group, and other investors joined forces under GLAS, a trustee, and voted to dismiss five board members representing the former majority owner of the company, European TopSoho.[21]

Isabelle Guichot, former CEO of Balenciaga and Maje, was named CEO of the group in 2021 to replace Daniel Lalonde upon his resignation.[3]

Subsidiaries

SMCP controls the following subsidiaries as of August 2022.[2]

  • Sandro
  • Maje
  • Claudie Pierlot
  • De Fursac

References

  1. 1 2 3 4 5 "2021 Full-Year Results" (PDF). smcp.com. March 9, 2022. Retrieved August 28, 2022.
  2. 1 2 3 4 5 "SMCP's Profile - BoF". businessoffashion.com. March 9, 2022. Retrieved August 28, 2022.
  3. 1 2 Didrich, Joelle (August 2, 2021). "SMCP Appoints Isabelle Guichot as CEO". Women's Wear Daily. Retrieved August 28, 2022.
  4. ↑ Groves, Ellen (March 4, 2009). "Obit: Claudie Pierlot, French Designer". Women's Wear Daily. Retrieved August 28, 2022.
  5. 1 2 Diderich, Joelle (September 20, 2010). "L Capital to Buy Stake in Groupe SMCP". Women's Wear Daily. Retrieved August 28, 2022.
  6. ↑ Edelson, Sharon (September 15, 2011). "Sandro, Maje to Open New York Units". Women's Wear Daily. Retrieved August 28, 2022.
  7. ↑ Socha, Miles; Guilbault, Laure; Iredale, Jessica (April 18, 2013). "KKR Buys Majority of Sandro, Maje Group". Women's Wear Daily. Retrieved August 28, 2022.
  8. ↑ Socha, Miles (August 31, 2015). "SMCP Revenues Climb 32 Percent in First Half". Women's Wear Daily. Retrieved August 28, 2022.
  9. ↑ Socha, Miles (March 31, 2016). "Shandong Ruyi to Acquire Majority of Sandro, Maje Group". Women's Wear Daily. Retrieved August 28, 2022.
  10. ↑ Socha, Miles (April 4, 2016). "Sandro, Maje to Seize Affordable Luxe Trend in China". Women's Wear Daily. Retrieved August 28, 2022.
  11. ↑ Socha, Miles (August 31, 2016). "China Powers a 19.2% H1 Gain at SMCP". Women's Wear Daily. Retrieved August 28, 2022.
  12. ↑ Spencer, Mimosa (October 19, 2017). "SMCP Prices IPO at 22 Euros Per Share". Women's Wear Daily. Retrieved August 28, 2022.
  13. ↑ Conti, Samantha (February 9, 2018). "Shandong Ruyi Buys Bally, with JAB Retaining a Minority Stake". Women's Wear Daily. Retrieved August 28, 2022.
  14. ↑ Guilbault, Laure (June 25, 2019). "SMCP Acquires French Men's Label De Fursac". Business of Fashion. Retrieved August 28, 2022.
  15. ↑ "French fashion group SMCP buys men's luxury brand De Fursac". Reuters. June 25, 2019. Retrieved August 28, 2022.
  16. ↑ Burlet, Fleur (November 29, 2019). "Sandro, Maje and Claudie Pierlot Go Fur-free". Women's Wear Daily. Retrieved August 28, 2022.
  17. ↑ Spencer, Mimosa (September 4, 2020). "SMCP Reports H1 Loss of 88.5 Million Euros, Plans Investor Day". Women's Wear Daily. Retrieved August 28, 2022.
  18. ↑ Weil, Jennifer (September 3, 2021). "SMCP Profits Grow in the First Half of 2021". Women's Wear Daily. Retrieved August 28, 2022.
  19. ↑ Zhang, Tianwei (January 6, 2022). "Who Will Shandong Ruyi's Brands SMCP, and Gieves & Hawkes?". Women's Wear Daily. Retrieved August 28, 2022.
  20. ↑ Templeton, Lily (October 29, 2021). "SMCP Shares to Be Sold by Creditors After Shareholder Defaults". Women's Wear Daily. Retrieved August 28, 2022.
  21. ↑ Wynne, Alex (January 14, 2022). "SMCP Dismisses Former Chinese Owners From Board". Women's Wear Daily. Retrieved August 28, 2022.
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