Maisons du Monde (MDM) H1 2025 earnings summary

Executive summary

• Net sales declined 9.7% year-over-year to €444.6m, with like-for-like sales down 8.7%, but sequential improvement was seen from H2 2024 and Q1 2025 to Q2 2025, and June marked the best monthly performance in two years.

• Ongoing transformation initiatives include brand communication, AI-based replenishment, store network improvements, and supply chain optimization, with a completed head office redundancy plan and warehouse reductions.

• 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.

• Cost savings of €18m achieved in H1, supporting a three-year €110m savings target.

Financial highlights

• H1 2025 group sales were €444.6m, down 9.7% year-over-year and 8.7% like-for-like.

• Gross margin was €286.1m (64.3% of sales), down from €318.9m (64.8%) in H1 2024, but remained resilient despite a highly promotional environment.

• EBITDA margin was 10.3% (down from 13.0% in H1 2024), and EBIT was -€22.0m versus -€5.8m in H1 2024.

• Free cash flow was negative €65m, mainly due to high inventories and lower-than-forecast sales.

• Net financial debt (excl. IFRS 16) increased to €156.9m as of June 30, 2025, up €72m 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.

• Targeting €45m in cost savings for FY25, with €18m already delivered, and aiming to reduce inventory to six months of coverage by year-end.

• Free cash flow expected to improve in H2 as inventory is sold down and working capital unwinds.

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