Sep 14, 2015
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SMCP: stock exchange flotation next year?

Sep 14, 2015

The French miracle exists… And it's called SMCP, the group featuring the Sandro, Maje, Claudie Pierlot brands on its team! When investment fund KKR acquired 65% of SMCP's capital in 2013, fashion professionals were surprised by the company's valuation, €650 million, eleven times its EBITDA at the time. 

A Sandro model - Sandro

And now, according to Le Figaro, only two years after becoming a shareholder, the fund is working towards the apparel company's stock exchange flotation. Two banks have been entrusted with the mandate, UBS and Merril Lynch. The flotation is likely to be scheduled for next March.
KKR is also notably among the potential purchasers of Gérard Datel, currently going into receivership. The Trade Court is expected to issue a ruling at the end of September. 

The financial figures reported by SMCP are indeed attractive, given how unsettled the fashion business is. The group has in fact announced a 32% increase (compared to last year) in its 2015 first-half financial year revenues, valued at €316 million, while EBITDA was also very much on the rise, growing more than revenue.

This performance, brought about by the expansion of the three brands and the evolution of a targeted international deployment, was supported by a strong like-for-like growth (+8.9% at constant exchange rates).

Internationally, all indicators are positive too. Across all geographical regions, the group recorded a 64.9% revenues growth, which turns into a 14.9% increase with number of shops held constant.

Also, the revenues share of international sales at the end of June grew to 48%, compared to 38% a year earlier. 

As of the end of June 2015, the SMCP stores network reached 1,039 outlets - of which 852 directly-owned and 187 in partnership, the three brands now being present in 34 countries.

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