Maisons du Monde
Adjustment of 2023 annual objectives considering a deteriorating non-food consumption environment
PRESS RELEASE
Financial Information
Adjustment of 2023 annual objectives
considering a deteriorating non-food consumption environment
Nantes, 9 October 2023 - Maisons du Monde, Euronext Paris: MDM; ISIN: FR0013153541, announces an adjustment of its 2023 annual objectives due to the deterioration in consumer confidence observed across Europe, affecting overall non-food consumption for H2. Conference Call to be held on 10 October at 8:30 am CET (see below).
After a positive month of July, non-food consumption started to go through a strongly deteriorating trend as widely witnessed across the sector.
In this situation, the Home & Furniture sector is feeling the full effect of reduced discretionary consumer spending, resulting in decreased traffic both in-store and online.
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As a result, third-quarter sales, which will be subject to a detailed publication on October 26th, are expected to decline by 9.4% compared to the same period in 2022, despite tactical price adjustments, non-discount commercial initiatives and an increased product availability.
Given the current trends in consumer behavior and the performance in Q3, Maisons du Monde is adjusting its 2023 financial objectives as follows:
Adjusted guidance | Previous guidance | |
Top line |
Decline by c. -10% |
Decline in the low-to-mid single digit range, with a sequential improvement in H2 vs H1 |
EBIT | €40m-€50m | €65m-€75m |
FCF | €20m-€30m | €40m-€50m |
Dividend Pay-out ratio | 30 to 40% |
In this deteriorated context, Maisons du Monde will further accelerate the implementation of its 3C plan focusing on Customer, Costs and Cash, for Q4 2023. The Group is notably expecting to significantly outperform its €25m cost savings plan for 2023 and will implement additional measures given the current deterioration in macro trends.
In addition, the Group confirms that it will announce a more extensive transformation plan in Q1 2024.
These efforts will benefit from the recent strengthening of the Executive Committee, with the appointment of Christophe Lapotre as Head of Retail and Guillaume Lesouef as Head of Marketing, Merchandise and Sustainability.