SMCP to Take Profit Hit in China Due to Coronavirus

PARIS, France — French fashion group SMCP, whose brands include Sandro and Maje, said on Tuesday that its profits and sales in China would be hit by the coronavirus afflicting the region, sending its shares lower.

The company, in which Chinese company Shandong Ruyi has a majority stake, said sales and profits had been "significantly impacted" due to the impact of the coronavirus on Chinese tourism numbers and shop closures.

The company added it would be pushing back a capital markets day that had been scheduled for April 2 to September 30.

SMCP shares were down 7.1 percent in early session trading, among the worst performers on the Paris stock market.

"While we cannot predict the duration of the crisis, we have been taking appropriate measures to mitigate the impact on our business," said SMCP Chief Executive Daniel Lalonde.

"Beyond this, I remain fully confident in our strategy, the strength of our brands and their potential in China," he added.

More than 80,000 people have been infected in China since the coronavirus outbreak began, apparently in an illegal wildlife market in the city of Wuhan late last year.

Fast-spreading outbreaks in Iran and South Korea, and the first cases in several countries in the Middle East, have fed worries of a pandemic.

By Sudip Kar-Gupta; editor: Louise Heavens.