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Maisons du Monde
Earnings Release • Oct 9, 2023
1500_iss_2023-10-09_c8af8314-28ec-4ec9-ba40-967f03a2f9ac.pdf
Earnings Release
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PRESS RELEASE
Financial Information
Adjustment of 2023 annual objectives
considering a deteriorating non-food consumption environment
Nantes, 9 October 2023 - Maisons du Monde, Euronext Paris: MDM; ISIN: FR0013153541, announces an adjustment of its 2023 annual objectives due to the deterioration in consumer confidence observed across Europe, affecting overall non-food consumption for H2. Conference Call to be held on 10 October at 8:30 am CET (see below).
After a positive month of July, non-food consumption started to go through a strongly deteriorating trend as widely witnessed across the sector.
In this situation, the Home & Furniture sector is feeling the full effect of reduced discretionary consumer spending, resulting in decreased traffic both in-store and online.
As a result, third-quarter sales, which will be subject to a detailed publication on October 26th , are expected to decline by 9.4% compared to the same period in 2022, despite tactical price adjustments, non-discount commercial initiatives and an increased product availability.
Given the current trendsin consumer behavior and the performance in Q3, Maisons du Monde is adjusting its 2023 financial objectives as follows:
| Adjusted guidance | Previous guidance | |
|---|---|---|
| Top line | Decline by c. -10% | Decline in the low-to-mid single digit range, with a sequential improvement in H2 vs H1 |
| EBIT | €40m-€50m | €65m-€75m |
| FCF | €20m-€30m | €40m-€50m |
| Dividend Pay-out ratio | 30 to 40% |
In this deteriorated context, Maisons du Monde will further accelerate the implementation of its 3C plan focusing on Customer, Costs and Cash, for Q4 2023. The Group is notably expecting to significantly outperform its €25m cost savings plan for 2023 and will implement additional measures given the current deterioration in macro trends.
In addition, the Group confirms that it will announce a more extensive transformation plan in Q1 2024.
These efforts will benefit from the recent strengthening of the Executive Committee, with the appointment of Christophe Lapotre as Head of Retail and Guillaume Lesouef as Head of Marketing, Merchandise and Sustainability.
The Board, including itsreference shareholder representatives, has expressed itsfullsupport for the steps being taken by Management and the Group as Maisons du Monde navigates this period of deteriorating consumption trends.
Conference call for investors and analysts
Date: 10 October 2023 at 8h30 am CET
Speakers: François-Melchior de Polignac, CEO and Gilles Lemaire, Acting CFO Connection details:
Financial calendar
26 October 2023 Q3 and 9M 2023 sales
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Disclaimer: Forward Looking Statement
This press release contains certain statements that constitute "forward-looking statements," including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions or which do not directly relate to historical or currentfacts. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecasted or implied by such forwardlooking statements. Accordingly, no representation is made that any of these statements or forecastswill cometopassorthatany forecastresults will be achieved. Any forward-looking statementsincluded in this pressrelease speak only as ofthe date hereof andwill not give rise to updates or revision. For amore complete list and description ofsuch risks and uncertainties, referto Maisons du Monde's filings with the French Autorité des marches financiers.
About Maisons du Monde
Maisons du Monde, a uniquely positioned and beloved brand across Europe, stands as the European leader in inspirational and affordable home & living. It offers a wide and constantly renewed range of furniture and home accessories across multiple styles. Creativity, inspiration and engagement are the brand's core pillars. Leveraging its distinctive direct-to-consumer omnichannel model, the company generates over 50% of its sales digitally, through its online platform and in-store digital sales and operates 357 stores across 9 European countries. At the end of 2020, the Group launched a curated marketplace to complement its offering and become the reference one-stop shop in inspirational and affordable home and living. In November 2021, Maisons du Monde unveiled its company purpose: "Inspiring everyone to open up to the world, to create together unique, warm and sustainable places to live."
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Contacts
Investor Relations Press Relations
Carole Alexandre
Tel: (+33) 6 30 85 12 78 [email protected] [email protected]
Pierre Barbe Tel: (+33) 6 23 23 08 51