Maisons du Monde (MDM) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 sales reached €221.4 million, down 9.9% like-for-like and 10.9% year-over-year, reflecting challenging market conditions and weak consumer demand.

• Transformation initiatives included new product ranges, enhanced brand visibility, expanded B2B offerings, and improved store concepts.

• Brand visibility improved, with a 5-point increase in awareness and a 2.4pt rise in NPS to 56.8.

• International markets, especially Spain and Italy, showed resilience, nearing breakeven and turning positive in March, while France and online channels underperformed.

• Online sales dropped 17.6% due to reduced paid traffic from reallocated marketing investments.

Financial highlights

• Net sales declined to €221.4m from €248.4m in Q1 2024, a 10.9% year-over-year decrease.

• Like-for-like sales fell 9.9%, with retail like-for-like down 5.7%, the best performance in recent quarters.

• Decoration sales dropped 10.1% to €124.3m; furniture sales fell 11.8% to €97.1m.

• Store channel represented 73.4% of sales, online 26.6%; online sales declined 17.6% year-over-year.

• Marketplace sales declined 10%.

Outlook and guidance

• Cumulative free cash flow target of over €100 million extended to 2024-2027 due to persistent market headwinds.

• Additional €10 million in cost savings targeted, raising the three-year goal to €110 million.

• Focus for 2025 is on revitalizing top-line growth, strengthening the brand, and accelerating transformation, especially in online and omnichannel experiences.

• Management notes a slow rebound in demand and continued consumer caution, especially in France.