Maisons du Monde results show that Q2 activity was impacted in June by macroeconomic uncertainties. Gross margin rose by 150 basis points, reaching 65.3%. Free Cash Flow remained nearly stable compared to H1 2023.
Gross margin increased by 150 bps to 65.3%, partially offsetting a -9.6% drop in sales.
Free Cash Flow remained nearly stable as expected, with cost and cash initiatives mitigating negative EBIT.
Photo: Dreamstime.
The results show the adaptation of the store network is accelerating:
- 5 store openings in H1, including 2 under affiliation.
- A renewed concept successfully tested in 3 pilot stores, showing double-digit higher performance compared to the network. This concept has been rolled out to 17 stores with limited investment, in line with our agenda to revamp 70 stores in 2024.
- Positive results from 5 affiliate stores in operation for one year, confirming the 2024 target of 13 affiliate stores and approximately 30% of the network under affiliation/franchise by the end of 2026.
Optimisation of the operating model is showing initial benefits:
- €20 million in gross cost savings, confirming our 3-year commitment of €85 million in gross savings.
-15.6% reduction in inventories, i.e., €188 million.
- Capex at 1.9% of sales, i.e., €9 million.
François-Melchior de Polignac commented: '2024 marks a pivotal year in our Inspire Everyday 2024-2026 journey. The Transformation Plan we presented earlier this year is now well underway as expected. The negative EBIT and Net Result realised in the first half of the year, which we had anticipated, are a consequence of the strategic investment we are making to positively transform our business model. By 2026, we intend to emerge stronger than ever, with an optimised offering, a renewed concept, and an enhanced store footprint comprising a significant portion of affiliate partners. These actions will elevate our inspiring, accessible, and sustainable Brand.'
During the second half, Maisons du Monde will continue executing its Inspire Everyday transformation plan by accelerating various initiatives to drive the evolution of its business model while simultaneously streamlining operations.
These initiatives will contribute to generating cumulative free cash flow of more than €100 million by 2026.
More information:
Maisons Du Monde
www.maisonsdumonde.com