PARIS — SMCP, the owner of contemporary labels Sandro, Maje and Claudie Pierlot, has reported a 5.8 percent decline in its reported sales for the first quarter of 2024, with France and Asia, especially China, weighing on numbers.

Revenues for the three months to March 31 totaled 286.8 million euros, representing a drop of 5 percent on an organic basis. The Sandro and Maje brands both saw slight organic growth when factoring Chinese business out of the numbers, the company said.

More from WWD

• Sacai Expands China Presence With Store in Plaza 66 Shanghai

• Veja Continues Its Hot Streak With London Flagship Opening

• Louis Vuitton's Voyager Show Livestream Breaks Xiaohongshu Record

“As anticipated, our first quarter remained on a similar trend to that seen in the second half of 2023,” chief executive officer Isabelle Guichot said in a statement.

Domestic sales fell 7.4 percent on an organic basis to 98.2 million euros, weighed down by consumers reining in spending. In Asia-Pacific, sales were down 15.7 percent to 57.3 million euros.

Business in the U.S., Canada and Mexico was buoyant — sales for the region were up 8.9 percent organically to 42 million euros. In EMEA outside France, revenues totaled 89.4 million euros, which was roughly flat.

“We are satisfied with our performance in the United States and our resilience in Europe, except in France, where consumer spending remains volatile. In Asia, our business continues to be affected in China by low in-store traffic, while our sales are dynamic in Southeast Asia,” Guichot said.

The company said its network optimization continued in the quarter, with 11 net store closures, and that it has reduced its rate of discounting, mainly in Europe and North America, a move seen as key to bringing the business back on track.

As announced with its 2023 numbers in February, SMCP revealed more details of the turnaround plans it hopes will help it return to profitable growth and market-share gains by 2026. “Over the coming months we expect to fully benefit from our global geographic footprint and accelerating performance in high-potential regions,” Guichot said.

Plans to streamline the store network include the closure of 100 locations over the next two years, mainly in China, where it will reduce its footprint by between 15 and 20 percent this year.

It will also optimize its network in Europe, mainly in Northern Europe and for the Claudie Pierlot brand, which will close 30 doors in the mid-term and capitalize on its strong digital penetration. For the Fursac brand, SMCP said it would focus on development in department stores.