SMCP Sales Surge 2.5% in Q3 with Full-Price Strategy Impact

UPDATE: SMCP has just announced a 2.5% increase in Q3 sales, reaching €294 million, driven by a robust full-price strategy and strong performance in the U.S. and EMEA. This positive momentum is critical as the company navigates a complex economic landscape.

The latest results confirm that SMCP’s strategy to upscale its brands is taking hold, despite challenges in Asia where sales fell 8.8%. The company emphasized that physical store performance in China is showing promise again, with mid-single-digit growth in the quarter, even as it continues to realign its network and close underperforming stores.

CEO Philippe Guichot stated, “I am particularly proud of our performance in America and EMEA, where growth remains very strong.” This sentiment underscores the urgent need for brands to adapt in a rapidly changing global market.

In Europe, sales surged 8% overall, although France faced a slight decline of under 1% due to ongoing political instability. Despite this, physical store sales rebounded following last year’s Olympic Games in Paris. Digital sales, however, were impacted by the full-price strategy, highlighting the delicate balance retailers must maintain.

SMCP’s full-price approach has seen a three-point reduction in discount rates compared to 2024, showcasing the brand’s commitment to enhancing desirability across all regions. “We approach the end of the year with confidence in our ability to sustain this trajectory,” Guichot added, signaling a proactive stance in uncertain market conditions.

In Asia, while the region struggles, there are signs of recovery. Guichot noted improvements in Malaysia and Thailand, along with promising starts in new markets like India and Indonesia. The recent partnership with Samsung in South Korea positions SMCP to leverage Samsung’s extensive distribution network, commencing with the spring 2026 collections.

As the company continues its global expansion, new openings in countries like Georgia and Egypt are expected to offset the downturn in China. The strategic focus on the full-price model aims to elevate brand perception from mass to accessible luxury.

In summary, SMCP’s Q3 results reflect a dynamic approach to market challenges, with the potential for continued growth as they adapt to changing consumer behaviors and economic pressures. Stakeholders will be keenly watching how these strategies unfold in the coming months.