Trade the SMCP share!
SMCP

Analysis before buying or selling SMCP shares

Trade the SMCP share!
BUY   SELL
79% of retail CFD accounts lose money - XTB.com
 
Chart provided by Tradingview

Are you considering investing in the SMCP share price and are you looking for relevant information about this stock and this company? We offer to assist you in the implementation of your study of this stock by providing you with basic data that will serve you in the realization of your analysis of this share. In this article, you will find in particular the detail of the activities of this company and information on its sector of activity with its principal competitors or its recent partnerships. We will also give you information about news and publications that you can use in your fundamental analysis.

Elements to consider before selling or buying SMCP shares

Analysis N°1

First of all, we can study the various communications of this group about the strategies it has put in place and the growth objectives it has set.

Analysis N°2

These targets will then be compared to the group's annual or quarterly financial results to derive a confidence level.

Analysis N°3

As we have seen above, the partnerships and in particular the large-scale distribution partnerships of the SMCP Group are often important for its growth.

Analysis N°4

We will also keep a close eye on the diversification of the group's brand portfolio, which should be expanded in the coming years. The acquisition of a new strong brand will undoubtedly have a positive influence on the future profitability of the company.

Analysis N°5

Finally, you can observe what is happening with the group's competitors by following the major news and publications of the major luxury companies we have mentioned above.

79% of retail CFD accounts lose money. This is an advert for trading CFDs on XTB

General presentation of SMCP

The SMCP group is a French company that specializes in the luxury sector. More precisely, this company is involved in the creation and sale of luxury clothing and accessories for men and women. Among the major brands owned by this group, we find Sandro for 49.2% of the turnover, Maje for 38.5% of the turnover or Claudie Pierlot for 12.3% of the turnover.

It is also possible to divide the group's activities according to the method of distribution of the products and in this way:

  • Products sold in stores owned by the group and its brands represent 35.5% of sales.
  • Products sold in department store corners represent 33.7% of sales.
  • Products sold online represent 13.5% of the turnover.
  • Products sold in clearance stores represent 8.5% of the turnover.
  • Products sold to local partners generate 6.7% of the group's turnover.
  • Finally, products sold in affiliated stores generate 2.1% of sales.

The entire production of the SMCP group's products is carried out by subcontractors. Currently, this group can rely on a network of 1,466 points of sale throughout the world, including 1,172 own-name stores and its online shops.

As regards the geographical distribution of the group's activities, we note that SMCP achieves 36.9% of its turnover in France, 30% in Europe-Middle East-Africa, 19.9% in Asia-Pacific and 13.2% in America.

Analysis before buying or selling SMCP shares
79% of retail CFD accounts lose money. This is an advert for trading CFDs on XTB

The major competitors of SMCP

After having reviewed the activities carried out by the SMCP group, we propose to you to discover a little more in-depth the sector of activity in which it exerts. Indeed and if this company is part of the leaders of luxury in the world, it must also face some serious competitors that we propose you to discover from now on:

LVMH 

The LVMH group is of course the leader in this market. It is a French group of different companies that is the number one luxury goods company in the world in terms of turnover. It was created by the merger of the Moët Hennessy and Louis Vuitton groups in 1987. This group is therefore the number one luxury group in the world and has a portfolio of more than 70 prestigious brands in different sectors such as wines and spirits with Château d'Yquem, Moët & Chandon, Veuve Cliquot and others. Chandon, Veuve Cliquot, Krug, Hennessy and Glenmorangie, in the field of fashion and jewellery with the brands Louis Vuitton, Dior, Givenchy, Céline, Kenzo, Fendi, Guerlain, Marc Jacobs, Chaumet, Thomas Pink, Tiffany & Co and Bulgari. The LVMH group also operates in other sectors such as the media with Les Echos, Le Parisien and Radio Classique, in retailing with the Sephora and Le Bon Marché brands, and in the hotel industry with the Cheval Blanc Courchevel luxury hotel and the Belmond hotel group.

Kering 

The second and last serious competitor of SMCP is the Kering group which is also a French luxury specialist. The latter is specialized in the field of clothing and accessories. It owns and operates a portfolio of prestigious brands such as Gucci, Yves Saint Laurent, Boucheron, Bottega Veneta and Alexander McQueen. It is one of the leaders in this sector worldwide. The Kering Group was founded in 1962 and was first listed on the French CAC 40 index in 1988. The name Kering was given to it in 2013 and before that the group was called Pinault Printemps Redoute.


The major partners of SMCP

The development and expansion strategy of the SMCP group is largely based on the implementation of strategic and commercial partnerships with other companies and brands in the luxury sector or whose activities are complementary to its own. In order to better understand the interest of this type of rapprochement, we now propose to discover two concrete examples of these strategic alliances:

JD.com 

The first partnership we are going to talk about is the one set up with JD.com in order to extend its online presence on the Chinese market. JD.com is indeed one of the main e-commerce platforms in China and this partnership will allow Chinese buyers to access the Sandro and Maje collections of the group. This partnership is a crucial step for the development of SMCP's activities in Asia Pacific thanks to the group's digital strategy. Indeed, we know that this will greatly increase the number of customers of these brands in mainland China and completes the digital presence of the group in this country. The alliance between the two companies also allows SMCP to continue its diversification towards online sales channels.

Farfetch

Following the partnership mentioned above, SMCP has signed a new partnership in China with Farftech which will distribute Sandro's men's and women's collections. This high-end online sales platform already counts SMCP as one of its shareholders and reaches more than 13 million potential customers each month. Thanks to this new partner, the SMCP group now has its own international merchant sites and distributes its products in nearly 190 different countries.

79% of retail CFD accounts lose money. This is an advert for trading CFDs on XTB

Frequently Asked Questions

When to take a position on the SMCP share?

The best time to take a position on SMCP shares is often the start of an upward or downward trend caused by an important publication from this group. This may be the announcement of a partnership, the acquisition of a new company, brand or subsidiary, or the publication of financial results or the announcement of strategic objectives. Of course, technical analysis can also help you and only a careful analysis will allow you to implement your strategies.

What are the subsidiaries owned by the SMCP Group?

The SMCP group is composed of several subsidiaries that it owns 100%. It is therefore interesting to know them. Among the companies which are part of this group, we find in particular the subsidiaries Sandro, Maje, Claudie Pierlot as regards the brands marketed by this group, but also the subsidiaries SMCP North America and SMCP Asia as regards the distribution of the products of the group in the various related geographical areas.

What are the latest financial results of the SMCP Group?

The SMCP Group releases its annual results every year around March. So the latest results released are for the financial year 2018 and here are the details. The SMCP Group achieved a consolidated turnover of €1,017 million and a net result of €50.2 million. Of course, the group also publishes quarterly data that you can follow directly from its website.

79% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on XTB