Maisons du Monde (MDM) Q4 2024 TU earnings summary

Executive summary

• Q4 2024 sales declined 9.5% year-over-year on a like-for-like basis, 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.

• Despite the downturn, sales performance improved compared to Q3, and transformation initiatives under the Inspire Everyday plan continued.

• The company focused on customer reconnection, commercial model transformation, and aggressive cost and cash management.

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

Financial highlights

• Q4 2024 sales reached €295.4m, down 9.5% like-for-like; full-year sales at €1,136.4m, down 10.3% year-over-year.

• Group GMV for Q4 2024 was €329.2m, down 10.7% year-over-year; full-year GMV was €1,136.4m, down 10.3%.

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

• Online sales represented 23.9% of Q4 2024, down 10.7% year-over-year; France accounted for 57.9% of sales, down 11.6%.

• Underlying EBIT for Q4 is expected to be close to zero, pending audit.

Outlook and guidance

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

• Priorities for 2025 include accelerating loyalty programs, smart rollout of new store concepts, and leveraging omnichannel strategy.

• Focus remains on executing action plans, accelerating store renovations, and expanding the affiliate and franchise network.

• Continued cost optimization, supply chain improvements, and head office reduction are planned.

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