Maisons du Monde (MDM) Q4 2024 TU earnings summary

Executive summary

• Q4 2024 sales reached €295.4 million, down 9.5% year-over-year like-for-like, reflecting a challenging consumer environment and weak real estate market, especially in France.

• 2024 marked a strategic transition year with milestones in operational and commercial models, cost management, and customer engagement initiatives.

• Positive free cash flow was achieved in 2024, supported by €45 million in cost savings and strict working capital and Capex control.

• Transformation initiatives included 63 store renovations and expansion of the affiliate and franchise models, with 338 stores at year-end.

• Challenging economic conditions in Europe led to a decline in sales, with consumer confidence and discretionary spending notably impacted.

Financial highlights

• Q4 2024 sales were €295.4m (retail) and €329.2m (GMV), both down over 9% year-over-year; full-year sales at €1,136.4m, down 10.3%.

• Decoration sales in Q4 dropped 11.2% to €191.5m; furniture sales declined 9.3% to €103.9m.

• Store sales accounted for 66.2% and online for 23.9% of Q4 sales, with online down 10.7% year-over-year.

• France Q4 sales decreased 11.6%; international sales dropped 9.1%, with Spain and Italy showing relative strength.

• Achieved €45 million in cost savings for 2024 and generated positive free cash flow.

Outlook and guidance

• The environment is expected to remain adverse in 2025, with no reliance on macroeconomic recovery.

• Priorities include accelerating loyalty programs, smart rollout of new store concepts, and leveraging omnichannel strategy.

• Continued rollout of store renovations, especially in commercial centers, and further optimization of the product assortment, including the launch of bathroom items.

• Additional cost savings targeted in 2025, including head office reductions and supply chain improvements.

• Management remains confident in recovering momentum and achieving sustainable growth despite ongoing challenges.