Hello and welcome to the SMCP 2024 half-year results. My name is Laura, and I will be your coordinator for today's event. Please note this call is being recorded, and for the duration of the call, your lines will be on listen-only mode. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero, and you will be connected to an operator. I will now hand you over to your host, Amélie Dernis, Head of Investor Relations, to begin today's conference. Thank you. Thank you. Good evening, everyone. Thanks for being with us today for the publication of SMCP half-year results. I'm here with our CEO, Isabelle Guichot, and our CFO, Patricia Despointes. You can listen to the publication via the usual conference call, or you can connect to the webcast to have the presentation displayed. As usual, we'll go through the presentation, and then we'll have the Q&A session. Before I hand it over to Isabelle and Patricia, I invite you to go through our usual disclaimer on page two. I think we can start now. Thank you, Amélie. Good evening, everyone. Thank you all for joining us today to talk about 2024 half-year results, with first, the key highlights on results and business initiatives. Then Patricia will detail our half-year results. Page four, you can see that our half-year sales came at EUR 585 million, a decrease by 3.6% at constant effects versus last year, and - 5.5% like for like. As anticipated, the environment of the semester remains challenging. However, we can see a sequential improvement in the Q2 compared to Q1, - 5% organic in Q1, - 2% in Q2. This comes especially from France and Europe and leads to a positive performance in Q2, excluding China. Other points worth mentioning are the following: half-year positive performance for Sandro and Maje in all regions, excluding China, the pursuit of full-price strategy with a 2 point decrease of discount rate in season despite good comps and a challenging environment. In all the regions, a little bit less in Asia, as you can expect, but we progressed very well in Europe and America. In this respect, we also improved the discount off-season, notably with a lower part of sales in outlets. Our digital share remains at a satisfactory level, above 20%. The network decreases by 29 POS, mainly linked to China's first step of network optimization that we announced at the publication of Q1. On page 5, you will see a detailed bridge of sales evolution between H1 '23 and H1 '24. The decrease comes from the like-for-like network, and actually, the majority of this decrease comes from China, just like in Q1. In H1, apart from China, the evolution of the rest of the network is positive, coming from the effect of 2023 openings and, to a smaller extent, a few 2024 openings, especially in America. The network optimization in China and for Claudie Pierlot accounts for a loss of EUR 5 million of sales compared to last year. Wholesale revenues slightly decreased, but it's just linked to a lower amount of off-price liquidation, while retail partners' contributions continue to increase, so we're completely aligned with our strategy. Finally, foreign exchange is marginally negative, also by EUR 2 million, representing 0.4%, mainly coming from CNY. Moving on to page 6 now, you will find here the performance by region. Patricia will get back in more detail in the presentation, but just a few highlights from my side. By region, Europe gained 2 points versus last year. France and America gained 1 point each, resulting from resilient performance in the regions. Symmetrically, APAC decreases by 4 points from a very challenging economic environment. To be noted that we have not entered yet the Japanese market and do not benefit from its current tailwinds. By brand, good performance for Sandro and Maje, excluding China. Other brands' trend is improving in Q2 versus the Q1, and that's very interesting for us. By channel, wholesale increases by 1 point in line with the strategy. Retail network remains the largest part of our business with 91% contribution. Within retail channels, Cornell's performed particularly well this semester. Page 7, you'll find a few highlights of the P&L and cash main messages. Additional details and bridges follow in the course of the presentation, obviously. I will just insist on three messages. Gross margin ratio is improving by more than one point compared to last year and is above 74%. Adjusted EBIT margin stands at 3.2% of sales. This is not a level representing our ambition, as you can imagine. This is mostly the result of an under-absorption of fixed costs, with the continuation of inflation, and it's also amplified by some restructuring costs that are mostly accounted for in EBIT. But you will see later in the presentation that we mitigated quite significantly those impacts. Net debt lands below EUR 300 million, which I consider a good achievement in a very adverse context and has been a constant area of attention. This level is lower than it was at the same period last year, thanks to inventory and CapEx control. So this is what for the big picture in terms of figures. Sustainability, I will focus on just one topic this time, but it's a very important one. We have finalized the computation of annual CO2 emissions, and we've reduced emission by 15% between 2022 and 2023. It's a remarkable result in one year, and I want to thank all the team for this global effort. The group works on three key areas to achieve this performance by switching all the source to renewable electricity in Europe, reducing air freight by 17%, and thanks to more sustainable materials in products and packaging. I will now move on to key initiatives illustrating our brand's desirability. Page nine, after the first edition of the Sandro and Louis Barthélemy capsule collection last year, Sandro renewed its partnership with this French artist to create a captivating collection that draws its inspiration from African craftsmanship and cultural traditions. Each piece in this collection embodies the spirit of travel and exploration, transporting customers to a world where art and creativity together in harmony. It's been a great commercial success this season again. Maje now, page 10, a very sporty mood, especially in Paris. Maje represents a capsule collection with Élodie Clouvel, a modern pentathlon athlete competing at the Olympic Games, illustrating pieces right on trend with chic sportswear by combining elegance and casual aesthetics. The name of this capsule is Club Saint Honoré, perfectly illustrating the mix between Parisian sport and chic. Claudie Pierlot has teamed up with Circle, a French brand on a sportswear collaboration that combines relaxed style with mastered elegance. Circle is a Paris-based brand specialized in circular sportswear, known for products which are at the same time technical and chic. Claudie Pierlot has always aspired to support women in all their activities, even in the most athletic ones. To finish the panorama of our brands, in June, Fursac took residence at the Picasso Museum to showcase its Spring-Summer Collection 25 collection to Paris Men's Wear Fashion Week, a very nice artistic collaboration with the museum and Galerie Perrotin with our pieces from the artist Lionel Estève, and a very nice display of the main themes of the Spring-Summer Collection. Page 13, all our brands obviously worked on appearances on the red carpet at the Cannes Film Festival last May with key opinion actors and leaders. On page 14, as usual, a few illustrations of openings on the quarter. Even though the network decreases, with 30 closing in China, we had some interesting openings or relocations to elevate the network. For instance, in Paris, Maje reopened a very nice flagship in Paris in the Avenue Victor Hugo with an enlarged concept allowing the brand to increase its level of excellence, and the first results are extremely good. We also continue to develop our network with partners in a qualitative way. Illustration here is a new store opened by Sandro in Central World in Thailand with our distributor. I leave it to Patricia now to give you more details about our half-year figures. Thank you. Thank you, Isabelle. Good evening, everyone. Let's start with more details on sales on page 16. France first at EUR 202 million, flattish versus last year, but interesting to note is the trend between Q1 and Q2, as you can see on the graph, with a sequential improvement at +6% in Q2 when Q1 was at -7%. Sandro and Maje did particularly well in France with their Spring-Summer Collection this quarter, which resulted in a French performance higher than sector indices and benchmarks such as IFM or Retail Int. We can also notice a positive trend of Fursac. Getting back to H1 as a whole, we are particularly happy about the performance in brick-and-mortar, which outperformed digital channels in the context of discount reduction by 2 points. EMEA now with revenue at EUR 192 million, progressing 1% organic driven by like-for-like growth, coming after an H1 '23, which was already high at +9%. This is a resilient half-year performance with homogeneous trend in Q1 and Q2. Also quite homogeneous by country, with nearly all retail markets positive versus last year in like-for-like brick and mortar, except basically Switzerland. Germany, Spain, Italy, even the U.K., which was a bit lagging behind over the past few semesters, have a positive trend in like-for-like physical network. As far as wholesale is concerned, partners are doing quite well also, with a strong performance in the Middle East, both sell-in and sell-out, and with the first full year of operations in Turkey with very satisfying results. In America, on page 17, sales at EUR 85 million for the semester are growing +6% organic versus last year, with both quarters positive. In retail, the U.S. continued to outperform versus Canada. Half of retail growth comes from like-for-like and half from perimeter, with recent openings, of which 6 net additions this semester. This is a good performance versus market, market which remains very volatile and still heavily promotional. Despite that, we managed to decrease our average discount rate in season by 2 points this semester. In non-retail in this area, we have a partnership with our distributor in Mexico, with revenues increasing steadily. In Asia, revenues stood at EUR 106 million for the half year, -20% organic, coming mostly from Greater China. The tougher trend that you can see in Q2 reflects very similar underlying market conditions between both quarters, but with an impact of store closures, which is increasing in Q2. As explained earlier in the year, we are fully focused on our action plan in China, on which we will get back in the next slide. In Asia, excluding Greater China, the picture is more favorable in several markets such as Singapore, Vietnam, Malaysia, and Thailand. I will comment on this one on China. Putting China back on track is a key priority for the group. This is all about the combination of immediate actions to address current market situation, plus midterm initiatives to renew with growth. As far as the first category of measures is concerned, we progressed on our network reshaping plan out of the circa 70 stores that we will close. 30 closures are already done. We have also adjusted the staff accordingly in the local HQ and adapted buying quantities to match the new size of the network. To better control inventories, we moderate our operation on e-commerce platforms, which are currently very promotional and mobilize a lot of inventory due to a high rate of consolidation and return in the market. We have also met our most important landlords in May to discuss about contractual conditions or support local marketing actions. Finally, we are discontinuing Claudie Pierlot brand in Asia to keep the focus on Sandro and Maje. In the meantime, we work on longer actions to stimulate future top line. We work on brand strategy locally, communication, display, discount management, and all other actions. Still early stage as we focus more on immediate actions, as you can imagine, but we'll update regularly on that. The Chinese market is currently very tough, as you can see at our competitors' level. This remains a very significant market in this industry, and we stand firm on the priority of returning to sustainable growth there. Thank you, Isabelle. Get back to financials on page 19. You will find a bridge of EBIT between H1 '23 and H1 '24. Actually, as you can see, most of the decrease comes from the volume effects linked to lower sales in a challenging environment. This is the first pink box. However, thanks to the action plans and controllable levers, we managed to offset most of this impact, half from gross margin ratio, box number one, improving by more than one point, coming from a good control of open-to-buy and discounts in season and off-season. And half from OpEx, coming from all operating costs, including store closures and optimization of indirect purchases and SG&A. This is the box number two. However, despite all these efforts, we are still exposed to some external and one-off factors. This is the box number 3. Inflation, which continues, including from remaining impacts of 2023, increases lasting in H1 2024, and also some restructuring costs. We expect H2 picture on cost to be more favorable, with in particular a lower impact of inflation and the continuation of positive effects of action plans. As far as net results is concerned, on page 20, you can see significant variances versus 2023. Though all in all, the evolution depleted from non-cash items derives mostly from EBIT. The biggest variance is on non-recurring charges. The EUR -30 million that you can see is nearly 100% explained by impairments. The biggest part is on goodwill for EUR 22 million on Claudie Pierlot brand, plus a few millions on store impairments, notably Claudie Pierlot and China. As far as other lines are concerned, the increase of financial expenses, mostly explained by market interest rates, is offset by a lower income tax expense. In the end, net result lands at EUR -28 million net-net, but is at break-even before non-cash, non-recurring bookings. On page 21, let's talk now about balance sheet and cash. In a semester with unsupported EBITDA, we hammered that we would pay the highest attention to inventories and investments to preserve cash. This is what we did with a significant decrease of inventories by -7% and nearly EUR 20 million down versus year-end closing and EUR -15 million down versus same period last year. The good commercial performance of Sandro and Maje supports this trend with fewer residual quantities, which is also reinforced by strong control of buying. This decrease of inventory supports a better trend than last year in terms of working cap variance, with a lower increase than last year, which remains, however, an increase explained by some movements on payables. In a nutshell, our action plans to control costs have led to a significant decrease of payables vis-à-vis our suppliers. CapEx remained controlled as well at 4% of sales versus last year. It's just stable, but this is explained by the fact that in 2023, the phasing of CapEx by semester was more back-end loaded, which is not expected to be the case in 2024. Free cash flow generation results in EUR -9 million, which is completely stable compared to last year. On page 22, net debt is at EUR 293 million at the end of the semester, EUR 13 million lower than one year ago at the same period. No specific comment on the split by line on the right part of the slide. No significant change except the reimbursement schedule in the contracts, which all take place in the first semester in May and June. Our debt to EBITDA ratio is at 3.05, higher than the contractual level at 2.5 x, which was waived by our banks for this half-yearly closing. As you know, both net debt and EBITDA have a seasonal profile, with H2 traditionally better than H1, meaning that we expect a ratio by year-end better than the level at the end of June. Thank you, Patricia. To conclude, I'd like to reaffirm how focused we are on the execution of the action plan. So today is an opportunity to sum up what has already been done. It's only a few months since we started. We have initiated a lot of projects already, and we have to be patient to see full effect translated into figures. As you may remember, this action plan is at the same time about regaining growth and managing cost. On the first aspect, we have finalized the implementation of the new digital platform. It's a very qualitative project leading to a much better performance of our site, loading time significantly reduced, more payment means in the funnel, just to give you a few examples. In brick-and-mortar retail, I don't get back to the closure plan, which progresses as planned. With partners who accelerate, India is nearly live. The stores are under construction. Indonesia has just been signed, ready to open in 2025. Our negotiation in other key areas, such as South America, should lead to new announcements quite soon. On the cost and cash projection side, we have initiated our two big optimization plans, both on indirect and direct purchases. The first one should yield positive results sooner than the second one for obvious reasons. Lead time of collection is what it is. So saving can come only when new collections arrive, contrary to indirect purchases, which are spread over time. But we know where we're going and what the levers of opportunities are. I don't get back to CapEx or inventory, which has already been highlighted earlier in the presentation, and are under control. One other big area of focus is on Claudie Pierlot, as we're currently reviewing its business model, challenging its brick-and-mortar and digital balance, the creation and communication pipeline, the size and rhythm of the offer, the geographical focus, and the supply chain review for an effect starting in Spring-Summer 2025. Moving on to page 24, as a conclusion, I will not comment on the key takeouts of this publication, but this slide is a summary of what we've just presented. I will just add a few comments on H2. In a still very volatile environment, we can acknowledge we will get more favorable comps starting August, and the favorable reception of our fall-winter collection bodes for a more encouraging semester. All teams are all hands on deck to execute the roadmap for a more dynamic top line and the execution of the action plans. Before we move on to the Q&A session, I would like to give you a heads-up on the recent updates regarding our shareholder situation. We remind you that the English court, upon request from GLAS, as trustees of the bondholders, the bond issued by European TopSoho has ruled that the transfer of the 16% stake of the company's share capital from European TopSoho to Dynamic Treasure in 2021 was invalid. The judge issued consequently on July 18th an order requiring, subject to potential legal recourse, the return by Dynamic of the 16% stake to European TopSoho, which is currently under liquidation in Luxembourg, by tomorrow, July the 20th, at the latest. We'll, of course, be monitoring the subsequent developments of the decision in the coming weeks. I thank you for your attention. I will now take your questions. Thank you. Thank you. Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star one on your telephone keypad. We'll wait for just a moment for them to queue for questions. Thank you. Okay. We have a question through the webcast, so I can read them for you. The first one is about the current trading in July. Thank you, Amélie. The current trading is like Q2 trend. July trend will not necessarily reflect Q3 trend because, as I mentioned earlier, last year, we've seen an inflection starting in the course of August. But July so far is more like Q2, I would say. Thank you, Isabelle. We have another one on H2. What can we expect with the closure plan in China, and how can we assess the impact on sales? In H1, roughly 30 store closures already done. In H2, about 40 planned, mostly end of Q3 and end of Q4. The impact on sales in H2 will mechanically be a little bit higher than it is in H1. Thank you, Isabelle. We have another one about the Olympics. How do you see the impact of this event, and how is the traffic in Paris in July so far? It's a little bit difficult to foresee, I would say. We have some touristic flows, but also probably more complex operation in certain areas of Paris during the Olympics. So we have roughly 10 stores per brand in the red perimeter, but also the same proportion in the gray perimeter. Few stores are absolutely closed, like obviously La Samaritaine Carrousel du Louvre. But in those very central stores, we see obviously a decrease in traffic. But for the time being, I think it's too early to say that the opening ceremony is tomorrow, and we monitor that closely. Thank you. Okay. Another one. In French, I will translate on that. I will also take this one. What is the cost of restructuring? You mentioned some restructuring costs. So how much is it in each one? Well, actually, it's not a significant amount. It's EUR 2 million something in each one. And there will be also a bit in H2. Thank you, Patricia. And we have another one. How do you explain France's performance in Q2? It's about double Q1. And are you convinced that it will last in H2? Good question. I would say that Spring-Summer collection performed very well in France for Maje and Sandro, but also in Europe and America. The first waves of fall-winter collections, which are already in store, are also performing. So we are confident in the quality of the coming waves of the collection. No reason to be worried. Thank you. Laura, do we have other questions? Thank you, Amélie. We currently have no questions coming through the audio. Once again, as a reminder, if you would like to ask a question, please press star one on your telephone keypad. Thank you. There is no question in queue from the audio. Anything from your end? Amélie? We have a new one on the webcast. Thank you, Laura. So I will read it. In today's fashion market, we see ultra-luxury, very resilient, and we also see Inditex doing very well. How do you see the coming years in the positioning in between? I think the way to answer that is to say that there is a growing space between ultra-luxe and mass market, as you described them. Our ambition in this period is to gain market share in a very challenging segment. We can see the department stores that we are gaining market shares, and I think that's a very big achievement, and the teams are really proud about it. The clarification of competitive environment within this landscape is an opportunity for us where we can market share, and we will try to keep on doing so. Thank you, Isabelle. So I think if we don't have any more questions, we can wish you a good evening, and thank you for listening. A good summer for you. Okay. Thank you. Thank you. Thank you. This concludes today's call. Thank you for your participation. Stay safe. You may now...