French fashion group SMCP on Wednesday reported a 28% drop in adjusted operating profit last year due to the inflationary environment, and warned to expect the first half of 2024 to follow the same trend.

The owner of brands such as Sandro and Maje saw its adjusted operating profit fall to €79.5 million, despite a 2.1% increase in sales to €1.23 billion.

In the fourth quarter, however, total sales fell by 1% on an organic basis, due in particular to a 6.7% decline in business in France, which accounted for 33.6% of SMCP's sales in 2023.

"Given the lack of visibility on the evolution of the consumer environment, the Group is not releasing a financial forecast for 2024," the company said.

(Written by Gaelle Sheehan; Mathias de Rozario, edited by Blandine Hénault)