In This Article:
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Revenue Loss: EUR 126 million decrease in sales, primarily from like-for-like store performance and store closures.
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Store Count: Net reduction of 3% in store numbers, totaling 338 stores.
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Free Cash Flow: EUR 15 million generated in 2024, compared to EUR 27 million in 2023.
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Gross Margin: Maintained at best-in-class levels despite promotional efforts and price reductions.
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EBIT: EUR 1.2 million, representing 0.1% of sales.
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CapEx: Reduced to 2.3% of sales, enabling the revamp of 63 stores.
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Debt: Bank debt reduced to EUR 85 million from EUR 105 million in 2022.
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Leverage Ratio: Increased to 3.8% due to EBITDA decline.
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Net Promoter Score (NPS): Improved by 4 points.
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Inventory: Remained flat in value, with a focus on maintaining fresh inventory.
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Liquidity: EUR 200 million available, with bank documentation valid until April 2028.
Release Date: March 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Maisons du Monde France SA (XPAR:MDM) maintains a best-in-class gross margin level despite promotional efforts and price reductions.
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The company has successfully generated EUR 15 million in free cash flow in 2024, contributing to its goal of EUR 100 million over three years.
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Maisons du Monde France SA (XPAR:MDM) has implemented an in-depth transformation plan, 'Inspire Everyday,' focusing on customer engagement and operational efficiency.
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The company has refreshed 63 stores and increased the share of stores in affiliation, enhancing brand visibility and customer experience.
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Maisons du Monde France SA (XPAR:MDM) has improved its Net Promoter Score by 4 points, indicating increased customer satisfaction.
Negative Points
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The company experienced a sales decline of EUR 126 million in 2024, primarily due to macroeconomic headwinds and a challenging real estate market in France.
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Maisons du Monde France SA (XPAR:MDM) has not achieved positive sales growth in 2024, with expectations of continued challenges in the near term.
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The store conversion rate has not met objectives, partly due to inventory liquidation efforts in 2023.
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The company's leverage ratio has increased to 3.8% due to a decline in EBITDA, although debt levels have decreased.
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The market has become more promotional, impacting the competitive landscape and potentially affecting future margins.
Q & A Highlights
Q: Do you see any step-up in promotional activity from competitors? A: Francois-melchior De Poligna, CEO: Step-up would be too much, but the market has become more promotional than it was a few years ago, and it is expected to remain so in the midterm.