Maisons du Monde (MDM) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 sales declined 15.3% year-over-year (14.3% like-for-like), impacted by macroeconomic volatility, supply chain disruptions, and extensive store renovations.

• September showed improvement with like-for-like sales down 9.4%, and price reductions on 3,000 products led to a 26% volume increase for 350 adjusted references.

• Transformation plan "Inspire Everyday" progressing, focusing on assortment streamlining, store network modernization, cost savings, and customer engagement.

• New concept stores outperformed peers, and the first affiliate partner store opened in Bordeaux.

• Strategic organizational changes enhanced omnichannel integration and customer experience.

Financial highlights

• Q3 2024 sales: €213.5 million, down 15.3% year-over-year and 14.3% like-for-like.

• Nine-month 2024 sales: €684.4m–€704.7m, down 10.5%–11.4% year-over-year.

• Furniture sales: €101.6m (-6.4% yoy); Decoration: €112.0m (-22.1% yoy).

• Online sales: 28.3% of Q3 sales, with Marketplace growth in Italy and Spain.

• Excluding stores under renovation, September retail sales were down 7.3% like-for-like.

Outlook and guidance

• Q4 focus on driving sales during peak season, executing transformation initiatives, and maintaining financial discipline.

• Store renovation impact on Q4 expected to be much less significant than Q3, as most works will be completed by end of October.

• On track to achieve €45 million cost savings in 2024 and targeting €80–85 million in savings by 2026.

• Capex/sales ratio targeted at 3% market standard by 2026.

• No challenges anticipated in meeting working capital targets for the year.