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Maisons du Monde
Earnings Release • Jan 25, 2024
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Earnings Release
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PRESS RELEASE Nantes, 25 January 2024
FOURTH-QUARTER AND FULL-YEAR 2023 TRADING UPDATE
Q4 sales down -7.9%, marking sequential improvement vs preceding 9 months in a persistently challenging environment
Full-Year sales at -9.3%, vs c.-10% adjusted guidance
- Group GMV: Q4 at €367.9m (-5.5% yoy), FY at €1,263.9m (-5.5% yoy) o/w Marketplace GMV: Q4 at €49.4m (+24.4% yoy), FY at €176.9M (+45.7% yoy)
- Group sales: Q4 at €329.6m (-7.9% yoy), FY at €1,125.4m (-9.3% yoy)
- FY 2023 adjusted guidance on EBIT and FCF confirmed
| Q4 2023 | Q4 2022 | % | FY 2023 | FY 2022 | % | |
|---|---|---|---|---|---|---|
| (in EUR million) | Change | Change | ||||
| Group GMV | 367.9 | 389.1 | -5.5% | 1 263.9 | 1 337.1 | -5.5% |
| Sales | 329.6 | 358.0 | -7.9% | 1 125.4 | 1 240.4 | -9.3% |
| Sales by product category | ||||||
| Decoration | 215.2 | 240.3 | -10.5% | 648.2 | 719.8 | -9.9% |
| % of sales | 65.3% | 67.1% | 57.6% | 58.0% | ||
| Furniture | 114.5 | 117.8 | -2.8% | 477.2 | 520.6 | -8.4% |
| % of sales | 34.7% | 32.9% | 42.4% | 42.0% | ||
| Sales by channel | ||||||
| Stores | 250.8 | 274.9 | -8.7% | 815.7 | 880.9 | -7.4% |
| % of sales | 76.1% | 76.8% | 72.5% | 71.0% | ||
| Online | 78.8 | 83.2 | -5.3% | 309.6 | 359.6 | -13.9% |
| % of sales | 23.9% | 23.2% | 27.5% | 29.0% | ||
| Sales by geography | ||||||
| France | 192.7 | 204.4 | -5.7% | 622.9 | 663.8 | -6.2% |
| % of sales | 58.4% | 57.1% | 55.3% | 53.5% | ||
| International | 137.0 | 153.6 | -10.8% | 502.5 | 576.6 | -12.9% |
| % of sales | 41.6% | 42.9% | 44.7% | 46.5% |
SALES DETAILS
SAVE THE DATE – UPCOMING EVENT
- 12 March 2024: Presentation of FY 2023 results and medium-term transformation plan
1
MARKET TREND AND BUSINESS HIGHLIGHTS
Q4 discretionary consumption remained sluggish throughout Europe amid fluctuant inflation and volatile consumer confidence.
Maisons du Monde invested commercially to face this context and to sustain Q4 sales.
The Group also strengthened the execution of its 3C Plan (Customers, Costs and Cash) with a strong focus on omnichannel Customer experience through new and distinctive initiatives:
- participating in Black Friday for the first time, offering attractive discounts, and recording the highest daily sales ever,
- sharing special events tailored for the most loyal customers, providing a unique shopping experience, to discover new collections, along with gifts and exclusive advantages,
- introducing the Second Chance initiative in-store, with second-hand or damaged Maisons du Monde products. This initiative, aligned with Maisons du Monde's CSR commitment, Good is beautiful, received the R-Award Circular Economy from le Collectif Génération Responsable.
The Group continued its proactive store portfolio management, reporting 4 net closures and 2 transfers to affiliation during the period. At the end of December 2023, the store portfolio reached 340 own stores including 18 net closures and 5 affiliated stores, as anticipated. This reflects Maisons du Monde's commitment to effective capital allocation and a disciplined cash management approach.
Q4 TRADING UPDATE
In Q4 2023, Group sales reached €329.6 million, reflecting a year-on-year decline of -7.9%, marking a sequential improvement compared to the previous 9 months.
Online sales amounted to €78.8 million, experiencing a slight decrease of -5.3% year-on-year. Leveraging the Black Friday momentum significantly helped to improve online trend compared to the previous periods. Marketplace in France, Spain, Italy and since Q3 in Germany showed strong growth (online GMV Marketplace: +24%).
Store sales were down -8.7% year-on-year at €250.8 million, with France achieving a comparatively better performance than other geographies. Increased products availability and appealing commercial initiatives led to improved conversion rates.
Decoration sales declined by -10.5% (€215.2 million). On the other hand, Furniture sales performed better at -2.8% (€114.5 million) boosted by product availability, promotional initiatives, free shipping and free installment payments.
Geographically, sales in France amounted to €192.7 million and continued to demonstrate relative resilience (-5.7% yoy) notably thanks to the implementation of first local marketing and merchandising initiatives.
International sales totaled €137.0 million (-10.8% yoy), also experiencing a sequential improvement compared to the previous 9 months. Despite some improvement, Germany remained the least performing market whilst the Iberian Peninsula showed the most dynamic trend.
FINANCIAL CALENDAR
12 March 2024 FY 2023 results and medium-term transformation plan
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 current facts. Such forwardlooking 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 forward-looking statements. Accordingly, no representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Any forward-looking statementsincluded in this pressrelease speak only as ofthe date hereof and will not give rise to updates or revision. For a more complete list and description of such risks and uncertainties, refer to Maisons du Monde's filings with the French Autorité des marchés 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 stores in 9 European countries."
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