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Roche Bobois announces decline in revenue, but expects return to growth

Roche Bobois SA posted revenue of €96.2m in Q3 2024, slightly down by -2.2% year-on-year at current exchange rates. Nine-months revenue totalled €300.6m, down -6.1% at current exchange rates.

In terms of retail sales, directly-operated stores reported a retail sale of €78.5m in Q3 2024, up +3.4% versus the same period in 2023, thanks to an excellent September observed across all regions (+12.4%) and the consolidation of three formerly franchised stores in China.

Over the first nine months of 2024, retail sales of directly-operated stores came to €261.3m, slightly up by +1.0% from the same period one year earlier. Including the order intake of franchised stores, all brands combined, total retail sales stood at €426.6m (-2.5% at current exchange rates and -1.3% at constant exchange rates).

Photo: Roche Bobois.

On a full-year basis, the Group confirms its guidance for 2024, namely full-year revenue of around €418m with EBITDA down by around 15-20%, factoring in a more profitable second half than the first.

Roche Bobois communicates both revenue (stemming from effective deliveries by its directly-operated stores and from royalties and commission fees) and retail sales (stemming from pre-tax order intake by the network of directly-operated stores and franchises for its two brands). The retail sales of directly-operated stores account for the main part of sales revenues with a delay of around 3-6 months depending on the region. Any growth in the retail sales of the directly-operated stores therefore has a direct effect on future revenue growth.

Return to growth expected in Q4 2024
Over the next quarter, Roche Bobois SA will seek to step up the pace of deliveries for its order backlog (€139m at 30 September 2024, including China) and therefore return to growth in Q4 2024. As a reminder, the Group is aiming for a slight increase in revenue for H2 2024 versus the same period one year earlier.

On a full-year basis in 2024, the Group reaffirms its guidance for revenue of around €418m and a decline in EBITDA of approximately 15-20%, albeit with a more profitable second half than the first.

The Group continues to expand its network of directly-operated stores. In the United States/Canada, following the opening of 2 stores in Toronto (early July 2024) and the acquisition of franchised stores in Calgary and Vancouver (end-June 2024), the Group plans to open a directly-operated store in Montreal-Royal Mount (Canada) within the next few weeks.

New development projects are also underway in Las Vegas and Austin (United States). April 2024 saw the Group acquire the Cuir Center in Rouen, France. Parallel to this, 6 franchised stores opened in Casablanca Anfa (Morocco), San José (Costa Rica), Kuala Lumpur (Malaysia), Shijiazhuang, Taiyuan and Wenzhou (China).

In total, at the end of September 2024, Roche Bobois SA had 343 stores, including 267 Roche Bobois stores (127 directly-operated stores and 140 franchised stores) and 76 Cuir Centre stores (25 directly-operated stores and 51 franchised stores).

More information:
Roche Bobois SA
[email protected]
www.finance-roche-bobois.com

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