Maisons du Monde (MDM) H1 2025 earnings summary

Executive summary

• Net sales declined 9.7% year-over-year to €444.6 million, with like-for-like sales down 8.7%; sequential improvement was seen in Q2 2025, and June marked the best monthly performance in two years.

• Ongoing transformation initiatives included brand communication, AI-based replenishment, supply chain optimization, and cost-saving measures, with €18 million achieved in H1 2025.

• Online traffic rebounded in Q2, and brand awareness increased by 2.5% in H1 2025, outperforming competitors.

• Acquisition of 100% of Rhinov (RENOVE), a French AI interior design leader, was finalized to drive commercial synergies and business diversification.

• Governance changes included a new Chairman and board appointments.

Financial highlights

• Gross margin was resilient at 64.3% of sales, down slightly from 64.8% in H1 2024, despite a highly promotional environment.

• EBIT was negative at -€22.0 million (-4.9% margin), and free cash flow was -€64.9 million, mainly due to high inventories.

• EBITDA dropped to €46.0 million (10.3% margin), a 28.1% decrease year-over-year.

• Net income was -€75.6 million, impacted by a €44.3 million restructuring charge and store closure costs.

• Net financial debt (excluding IFRS 16) rose to €156.9 million as of June 30, 2025, up €71.8 million from December 2024.

Outlook and guidance

• Positive trading momentum continued into July, with June being the best month in two years.

• H2 2025 priorities include accelerating topline recovery, launching the Autumn-Winter collection earlier, and increasing marketing investments.

• Inventory buildup expected to support sales in H2 2025, with a target to reduce inventory to six months by year-end.

• Free cash flow expected to improve in H2 as inventory is sold down; cumulative free cash flow target of €100 million set for 2024-2027.

• Return to growth anticipated in 2026 and 2027, supporting free cash flow forecasts.