Maisons du Monde: First Quarter Sales 2023
PRESS RELEASE
First Quarter Sales
Sales in line with expectations,
reflecting high comparable base
Sequential improvement expected
throughout the year
Immediate launch of a company-wide “3C”
recovery plan focusing on Customers, Costs and Cash
- Group GMV: €307.2m, -6.7% yoy, +13.3% vs Q1
2019- Strong marketplace GMV: €42.1m, +112% yoy
Group Sales: €273.7m, -12.5% yoy, +1% vs
Q1 2019
- 2023 priorities: Customers, Costs &
Cash
- Focus on customer excellence to create conditions for
growth in H2
- Accelerate operating model streamlining through strong
cost optimization initiatives
- Ensure robust cash generation through further
optimization of capex and working capital
- 2023 guidance:
- Top line: Low-to mid-single digit negative, with a
sequential improvement in H2 vs H1
- EBIT: €65m-€75m
- Free Cash Flow: €40m-€50m
NANTES – 11 May 2023, 07:00 CET – Maisons du
Monde (Euronext Paris: MDM; ISIN: FR0013153541), the European
leader in inspirational and affordable home & living, published
the Group’s revenue for the first quarter of 2023.
Conference call to be held today at 09:00 CEST (see details
on page 5).
François-Melchior de Polignac, CEO,
commented: “As communicated last March, Maisons du Monde’s
sales were down in Q1 due to a high 2022 comparable base and a
macroeconomic context that remains complex and continues to weigh
on consumer confidence and purchasing power.
After completing my deep dive across the
organization and hearing extensively from our customers, I am more
convinced than ever that Maisons du Monde enjoys both a resilient
business model and truly strong fundamentals for growth, with an
inspiring “raison d’être”, an ongoing commitment to sustainability
and a genuinely strong brand supported by a differentiated offer
and an international omnichannel platform.
As a first step to resume conditions for
profitable growth, the Executive Committee and all Maisons du Monde
teams are embracing the immediate launch of a company-wide 3C
recovery plan, focusing on Customers, Costs and Cash.
First and foremost, this plan shall see us put
the customer back at the center of our organization and of
everything we do. Secondly, we are accelerating and augmenting our
cost reduction plans. Finally, we shall ensure robust cash
generation by further optimizing capital expenditures and working
capital.Maisons du Monde is fully committed to executing and
further expanding our 3C plan, which constitutes both our roadmap
to deliver our 2023 guidance and a first step to pave the way for
renewed profitable growth.”
Q1 2023 KEY HIGHLIGHTS
As flagged in March, the start of the year has
been challenging. In the first quarter of the year, Maisons du
Monde navigated in a difficult macroeconomic context and a fragile
consumption environment in Europe. This resulted in declining
traffic at Maisons du Monde, both in stores and online. The Group
continued to support sales through a number of initiatives,
including inspiring new Spring-Summer and Outdoor collections as
well as targeted promotions, and expects a sequential improvement
throughout the year.
COMMERCIAL DEVELOPMENTS
Brand and customers
During the first quarter, Maisons du Monde
continued its initiatives to enhance its brand awareness for the
benefit of its customers.
Total active customers reached 2.2 million, down
-4% yoy, whilst omnichannel customers were nearly stable compared
to the same period last year (+53% vs Q1 2019).
Maisons du Monde’s global social media community
grew by +4% yoy, reaching 8.6 million followers across Europe.
For the 7th consecutive year, Maisons du Monde
was recognized as the second favorite home & living brand1 in
France.
Collections
Maisons du Monde released its Spring-Summer
collections, Indoor and Outdoor, offering to customers a world tour
with six refreshing and exotic destinations under a single
watchword: “Ode to Lightness.”
Those collections were showcased in Paris in
February and have been very positively endorsed by industry experts
across Europe, as illustrated by an 80% increase of the audience vs
2022.
Commercial and operational
initiatives
Maisons du Monde continued to propose a unique
customer experience with a differentiating offer and initiatives to
support purchasing power.
- Targeted promotions in stores and online: In a
context that remains inflationary, Maisons du Monde launched
several targeted promotional initiatives to support traffic and
conversion, such as specific “small prices” selections and in
March, targeted rebates with “Les jours Maisons” and free delivery
offers on decoration and furniture items.
- Extension of the marketplace offering: Maisons
du Monde’s marketplace continued its development, by enriching its
offer to 242,000 references (+59% yoy) and 1,450 curated brands
proposed by nearly 560 vendors (+27% yoy), online and in stores in
all three countries (France, Spain and Italy).
- Further activation of the B2B business line:
Maisons du Monde increased its visibility through its presence at
dedicated international business fairs and extended its number of
references proposed to professionals. The B2B segment continued its
growth trajectory in hotels (+40% of the sales of the Business
Service), in offices and real estate.
Q1 2023 SALES PERFORMANCE
Summary of sales |
Q1 23 |
Q1 22 |
%Change |
(in EUR million) |
|
Group GMV |
307.2 |
329.1 |
-6.7% |
Sales |
273.7 |
313.0 |
-12.5% |
Like-for-like |
-14.0% |
-4.0% |
|
Sales by product category2 |
|
|
|
Decoration |
155.7 |
171.7 |
-9.3% |
% of sales |
56.9% |
54.8% |
|
Furniture |
118.0 |
141.3 |
-16.5% |
% of sales |
43.1% |
45.2% |
|
Sales by distribution channel |
|
|
Stores |
196.0 |
208.9 |
-6.2% |
% of sales |
71.6% |
66.7% |
|
Online |
77.7 |
104.1 |
-25.4% |
% of sales |
28.4% |
33.3% |
|
Sales by geography |
|
|
|
France |
148.0 |
161.6 |
-8.5% |
% of sales |
54.1% |
51.6% |
|
International |
125.8 |
151.4 |
-16.9% |
% of sales |
45.9% |
48.4% |
|
Q1 2023 Group GMV was €307.2
million, down -6.7% yoy (+13.3% vs Q1 2019), with online
GMV representing 35.3% of Group GMV, a level comparable to
2022. Marketplace GMV has doubled compared to Q1
2022 at €42.1 million, with €3.3 million in stores and €38.7
million online.
Q1 2023 Group sales amounted to
€273.7 million, down -12.5% yoy (+1% vs Q1 2019), due to a high
comparable base in Q1 2022, as well as a deteriorated macroeconomic
context and high inflation, weighing on household purchasing power.
This resulted in lower traffic, both in-store and online, and a
declining conversion rate vs the same period in 2022.
Sales by channel
Q1 2023 online sales were €77.7
million, down -25.4% yoy (+8,8% vs Q1 2019) and represented 28.4%
of Group sales compared to 33.3% in Q1 2022, reflecting dual
momentum with an activity decrease on Maisons du Monde’s website on
high comps and buoyant marketplace growth. Traffic was negative vs
last year but still up compared to the same period in 2019
(+50%).
Q1 2023 store sales amounted to
€196.0 million, down -6.2% yoy (-1.9% vs 2019), reflecting lower
traffic compared to Q1 2022.
Continuing its active store network management,
Maisons du Monde operated 352 stores at the end of March 2023,
compared to 350 stores in March 2022, with 6 closures over the
quarter vs year-end 2022.
Sales by category
Q1 2023 decoration sales
amounted to €155.7 million, down -9.3% yoy (+4.6% vs 2019) and
accounted for 56.9% of total sales. The category was supported by
targeted promotional and non-promotional initiatives (E.g. Les
jours Maisons, free delivery, etc.).
2 All commissions (marketplace and Rhinov’s decoration services)
are integrated in the “Sales by product category” line (decoration
and furniture). For comparison purpose, Q1 2022 figures have been
adjusted.
Q1 2023 furniture sales totaled
€118.0 million, down -16.5% yoy (-3.4% vs 2019).Despite improvement
in product availability and more selective promotions, the category
suffered from the effects of continued high inflation and from
deferred spending decisions by customers. This context deteriorated
in mid-Q2 2022, creating a high comparable base.
Sales by geography
Q1 2023 sales in France were
€148.0 million, down -8.5% yoy (-5.3% vs 2019) penalized by strikes
against pension reform from mid-January. Store
sales accounted for 73%. The number of stores stood at
215, vs 218 at the end of 2022 and 221 at the end of Q1 2019,
illustrating a disciplined adjustment of the retail network.
Q1 2023 international sales
totaled €125.8 million, down -16.9% yoy (+9.5 vs 2019). Combined
sales in Spain and Italy (more than 50% of total international
sales) were -10.6% yoy (+12% vs 2019). Combined sales in Belgium,
Germany, and Switzerland (35% of total international sales)
decreased by -23.1% yoy. Compared to 2019, sales in that region
were up by +7.5%, thanks to an additional 25 stores since 2019.
Over the quarter, international online sales were down -34%, mainly
driven by Germany and reflecting strong resource allocation
decisions made to optimize return on marketing investments.
After several years of market presence in the
UK, Maisons du Monde decided to shut down its loss-making
operations in this country. The Group did not have a retail
footprint in the country and therefore did not benefit from the
same brand awareness. Sales in the UK, only online, represented
thus just 1% of Group sales in full-year 2022. Activities will stop
by the end of Q2.
2023 PRIORITIES: CUSTOMERS, COSTS &
CASH
After the first weeks of immersion with Maisons
du Monde teams and given persistent macroeconomic uncertainties,
new CEO François-Melchior de Polignac, together with the Executive
Committee, revisited immediate priorities and launched a
company-wide “3C plan” focusing on Customers,
Costs & Cash to strengthen the model and rapidly resume
conditions for profitable organic growth:
Customers: Focus on customer excellence
to create conditions for growth in H2
- Prioritize customer-centricity, notably by implementing a
cross-functional customer committee in charge of enforcing Top 30
customer initiatives.
- Enhance store execution to deliver better customer experience
notably by improving order availability of furniture showcased in
stores and by reinforcing in-store staff communication devices to
speed up customer service.
- Improve price accessibility to support purchasing power by
implementing selective and relevant price adjustments as well as
targeted promotions, whilst safeguarding gross margin.
Costs: Accelerate operating model streamlining through
strong cost optimization initiatives to generate savings of €25m
before inflation
- Further adapt the cost base, notably by optimizing structures
at Head Office level and worked hours at store level.
- Improve resource allocation, notably by reviewing and
streamlining the project portfolio.
Cash: Ensure robust cash generation
- Further optimize Capex policy to deliver higher ROI.
- Optimize inventory management notably by improving store
allocation.
- Improve payment terms by extending implementation of new terms
to all suppliers.
2023 GUIDANCE
In line with the 2023 roadmap, articulated around the 3C plan,
and considering the comparable base effect on the group’s H1
performance, Maisons du Monde’s 2023 objectives are:
- Top line decrease in the low-to-mid-single digit range, with a
sequential improvement in H2 vs H1
- EBIT in a range of €65 million to €75 million
- Free Cash Flow in a range of €40 million to €50 million
- Dividend payout ratio of 30% to 40%
- ESG commitment: One-third of Maisons du Monde’s 2023
collections included in the ‘Good is beautiful’ selection
UPDATE ON THE SHARE BUYBACK PROGRAM
On 29 July 2022, the Group launched a second
share buyback program with an objective of repurchasing up to 10%
of its outstanding shares at market price over a period of several
months.At 2 May 2023, the Group had purchased
3,526,167 of its own shares, i.e. 81.5%
of the program at an average price per share of €10.24.On
8 March 2023, the Board of Directors decided to cancel 2,300,000 of
the treasury shares (or 5.3% of the total shares) it acquired under
this share buyback program. The cancellation was effective on March
10th, 2023. As a result, the Group’s share capital amounts to €133
million, comprised of 40,988,097 shares.
Conference call for investors and analysts
Date: 11 May 2023 at 09.00 am CEST
Speakers: François-Melchior de Polignac, Chief Executive Officer
and Régis Massuyeau, Chief Financial Officer
Connection details:
https://edge.media-server.com/mmc/p/q4e9ha4c
- Conference call:
https://register.vevent.com/register/BI3426f6b5b83a4e9580d2b7311160c291
Financial calendar
29 June
2023
Annual General Meeting
27 July
2023
Q2 and H1 2023 financial results
26 October
2023
Q3 and 9M 2023 sales
Disclaimer: Forward Looking
Statement
This press release contains certain statements
that constitute "forward-looking statements," including but not
limited to statements that are predictions of or indicate future
events, trends, plans or objectives, based on certain assumptions
or which do not directly relate to historical or current facts.
Such forward-looking statements are based on management's current
expectations and beliefs and are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from the future results expressed, forecasted or implied by such
forward- looking statements. Accordingly, no representation is made
that any of these statements or forecasts will come to pass or that
any forecast results will be achieved. Any forward-looking
statements included in this press release speak only as of the date
hereof and will not give rise to updates or revision. For a more
complete list and description of such risks and uncertainties,
refer to Maisons du Monde’s filings with the French Autorité des
marchés financiers.
***
About Maisons du Monde
Maisons du Monde, a uniquely positioned and
beloved brand across Europe, stands as the European leader in
inspirational and affordable home & living. It offers a wide
and constantly renewed range of furniture and home accessories
across multiple styles. Creativity, inspiration and engagement are
the brand’s core pillars. Leveraging its distinctive
direct-to-consumer omnichannel model, the company generates over
50% of its sales digitally, through its online platform and
in-store digital sales and operates 352 stores across 9 European
countries. At the end of 2020, the Group launched a curated
marketplace to complement its offering and become the reference
one-stop shop in inspirational and affordable home and living. In
November 2021, Maisons du Monde unveiled its company purpose:
“Inspiring everyone to open up to the world, to create together
unique, warm and sustainable places to live.”
corporate.maisonsdumonde.com
***
Contacts
Investor Relations |
Press Relations |
Carole Alexandre Tel: (+33) 6 30 85 12 78 |
Pierre Barbe Tel: (+33) 6 23 23 08 51 |
calexandre@maisonsdumonde.com |
pbarbe@maisonsdumonde.com |
1 EY Parthenon study – March 2023
- 2023 05 11 Q1 sales_EN_FOR RELEASE
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