Maisons du Monde (MDM) H1 2024 earnings summary

Executive summary

• H1 2024 sales declined 9.6% year-over-year to €491.1m, impacted by macroeconomic headwinds and weak June consumption, but gross margin improved by 150 bps to 65.3% due to lower freight costs and marketplace growth.

• EBIT turned negative at €-5.8m versus €16.3m in H1 2023, and net income was €-24.3m, reflecting strategic investments and transformation plan execution.

• Free cash flow remained nearly stable at €-0.9m, supported by cost controls, inventory reduction of 15.6%, and lower capex.

• The Inspire Everyday transformation plan progressed, with 17-20 stores revamped, 5 new stores opened (2 under affiliation), and a focus on assortment rationalization and omnichannel growth.

• Brand awareness in France increased by 3 points from 2022 to 2024.

Financial highlights

• H1 2024 sales: €491.1m, down 9.6% year-over-year; like-for-like and excl. UK: €477.5m, down 8.5%.

• Gross margin: €320.7m (65.3% of sales, up from 63.8%).

• EBITDA: €64.0m (13.0% margin, down from 15.7%).

• EBIT: €-5.8m (-1.2% margin, down from 3.0%).

• Free cash flow: €-0.9m (vs. €2.7m in H1 2023), supported by improved working capital from inventory reduction.

Outlook and guidance

• No significant market improvement expected in H2 2024, barring further political disruptions; sector faces a low consumption cycle.

• Targeting €45m in gross savings for 2024, as part of a €85m three-year commitment.

• Cumulative free cash flow target of over €100m for 2024-2026.

• No major change anticipated in gross margin rate for H2 2024.

• Accelerating rollout of renewed store concept and streamlining operations in H2 2024.