Core Points - The Singapore High Court ruled on July 4, 2025, that the 15.5% stake in SMCP, previously transferred to Dynamic Treasure Group in 2021, has been returned to European Topsoho S.à r.l. (ETS) on August 11, 2025 [1] - ETS entered bankruptcy proceedings in February 2023 and is currently under the management of a curator supervised by the Luxembourg court [1] - The return of shares clarifies the shareholding situation of SMCP, allowing the company to focus on its profitable growth strategy [2] Company Overview - SMCP is a global leader in the accessible luxury market, featuring four unique Parisian brands: Sandro, Maje, Claudie Pierlot, and Fursac [3] - The company operates in 55 countries with a network of over 1,600 stores and a strong digital presence in key markets [3] - Founded by Evelyne Chetrite and Judith Milgrom, Sandro and Maje were established in 1984 and 1998, respectively, and continue to receive creative direction from their founders [3] - Claudie Pierlot and Fursac were acquired by SMCP in 2009 and 2019, respectively [3] - SMCP is listed on the Euronext Paris regulated market under ISIN Code FR0013214145 and ticker SMCP [3]

Core Insights - The company reported solid commercial performance in the first half of 2025, particularly in Europe and America, leading to a significant increase in adjusted EBIT margin and record free cash flow generation [2][19][20] Financial Performance - Sales for H1 2025 reached €601.1 million, a 2.7% increase compared to H1 2024 [3][4] - Adjusted EBITDA rose to €112 million, reflecting a 13.8% increase from €98.5 million in H1 2024 [3][12] - Adjusted EBIT more than doubled to €42.6 million, up 126.7% from €18.8 million in H1 2024, with an EBIT margin of 7.1% [3][15] - Net income turned positive at €11 million, compared to a loss of €27.7 million in H1 2024 [3][16] - Free cash flow improved significantly to €33.1 million, up €41.9 million from a negative cash flow of €8.8 million in H1 2024 [3][46] - Net debt decreased by 30% to €205.6 million, down from €292.5 million in H1 2024 [3][18] Sales Breakdown - Sales growth was observed across all regions except for Asia Pacific, which was affected by network optimization strategies [4][10] - In France, sales reached €207 million, a 2.3% organic increase compared to H1 2024 [5][6] - EMEA sales increased by 5.9% to €204 million, driven by like-for-like growth [7] - In America, sales grew by 11.9% to €94 million, with a notable 21.6% increase in Q2 [9] - Asia Pacific sales decreased by 8.0% to €97 million, primarily due to the impact of network optimization in China [10][11] Operational Efficiency - The company implemented strict cost control measures, resulting in a 13% reduction in inventories compared to H1 2024 [4][17] - Total operating expenses decreased, supported by cost optimization initiatives, particularly from retail location closures in China [13][14] - The management gross margin remained stable at 74.3%, with a focus on a full-price strategy leading to a three-point decrease in average in-season discount rates [12][20] Strategic Initiatives - The company continues to optimize its retail network, with a net reduction of 20 points of sale in H1 2025, while expanding through partnerships in new markets [8][10] - The strategic focus on enhancing brand visibility and maintaining financial discipline is expected to sustain positive momentum in the second half of the year [2][20]