Q3 2021 salesbroadly stable yoy: €317 million, -1%vs 2020 (LFL -3%) and +12% vs Q319 (LFL +6%)
Upward revision of full-year 2021 guidance
Top line yoy growth: up low teens (previously: high single-digit)
EBIT margin: between 9% and 9.5% (previously: increasing byup to 50 bps vs 2020)
Free cash flow: materially above its 2020 level (previously: above)
Year-end store count: slightly higher vs end 2020 (previously: broadly stable)
Divestment of Modani: Agreement reached to reduce stake to 15%
Launch of €50 million ESG Impact share buyback program
NANTES – 26 October 2021, 07:45 CEST – Maisons du Monde (Euronext Paris: MDM; ISIN: FR0013153541), a European leader in affordable and inspirational home and living, today publishes the Group's sales for the third-quarter and first nine months of 2021, announces it is reducing its holding in Modani from 70% to 15% and launches a €50 million ESG Impact share buyback program.
Conference call to be held today at 09:00 CEST (see details on page 7).
Julie Walbaum, Chief Executive Officer of Maisons du Monde, commented:
“We are pleased with our nine-month performance, which demonstrates our ability to navigate through a volatile environment and execute our growth agenda. As expected, Q3reflecteda more normalized activity in our categories after a very strong third quarter last year. Withdouble-digit growth compared to 2019, our performance attests to the continued strengthof our brand and offering, as well as the relevance of our pan-European omnichannel model.
Against this backdrop, and despite continuing uncertainty linked to the global health situation and supply chain disruptions, we are revising upwards our full-year guidance to double-digit top line growth with an EBIT margin between 9% and 9.5%.
I am also pleased to announce new advances in line with our strategic and capital allocation priorities. We have reached an agreement to sell down our Modanistake from 70% to 15%so that we may devote our full attention to further enhancing the operational excellence of ourEuropean activities and consolidating our positions in our existing markets.
On the back of the Modanitransaction andthanks to our solid cash generation, we are also today launching ourfirst ESG Impact share buyback program, another demonstration of our reinforcedfocus on returning value to our shareholders. With its ESG component, this program is fully embedded in the Group’s values and vision to act as a responsible corporate citizen.”
I. 2021 Sales
Solidnine-month sales: €980 million (+21%)
Maisons du Monde’s nine-month 2021 sales posted a strong increase of +20.9% yoy to €980 million (LFL: +20.2%) thanks to a +29% increase in online sales combined with store sales growth of +17%. These rebounded as stores reopened in mid-May after being impacted at the beginning of the year by government-mandated store closures. The sales growth was also driven by the continuing success of Maisons du Monde’s revitalized collections. Compared to the first nine months of 2019, total Group 9M 21 sales were up +16% (LFL: +10%).
Summary of sales (in € million)
Q3 21
Q3 20
% Change
9M 21
9M 20
% Change
Sales
317.3
321.3
-1.3%
979.9
810.2
+20.9%
% like-for-like change1
-3.1%
+9.8%
+20.2%
-8.5%
Maisons du Monde
302.4
308.8
-2.1%
934.3
776.7
+20.3%
% like-for-like change
-4.1%
+10.6%
+19.0%
-8.2%
Modani
13.9
11.7
+18.6%
42.1
31.4
34.1%
Sales by distribution channel
Stores
228.5
230.7
-0.9%
623.0
533.3
+16.8%
% of sales
72.0%
71.8%
63.6%
65.8%
Online
88.7
90.6
-2.1%
356.9
276.9
+28.9%
% of sales
28.0%
28.2%
36.4%
34.2%
Sales by geography
France
164.1
169.8
-3.3%
496.3
421.9
+17.6%
% of sales
51.7%
52.8%
50.6%
52.1%
International
153.2
151.5
1.1%
483.6
388.3
+24.5%
% of sales
48.3%
47.2%
49.4%
47.9%
Sales by product category
Decoration
178.8
179.4
-0.4%
510.9
416.4
+22.7%
% of sales
56.3%
55.8%
52.1%
51.4%
Furniture
138.5
141.9
-2.4%
469.0
393.8
+19.1%
% of sales
43.7%
44.2%
47.9%
48.6%
The Group estimates that pandemic-related lockdowns in Europe reduced total sales during the first nine months 2021 by approximately €(45) million (-€60 million stores and +€15 million online) versus €(110) million during the first nine months of 2020 (-€130 million stores and +€20 million online).
The Group’s third-quarter 2021 sales totaled €317 million, representing a slight decrease of 1.3% year-on-year (yoy) (-3.1% LFL) compared to a very strong Q3 2020, which was boosted by pent-up consumer demand following the end of Covid-related lockdowns. Maisons du Monde’s sales were down -2.1% at €302 million (-4.1% LFL) while Modani’s sales of €13.9 million were up 18.6%.
Brand, Customers and Collections
During the first nine months of 2021, Maisons du Monde saw solid growth in its Instagram community (+23% more subscribers, reaching 5.2 million followers across Europe) compared to the same period of 2020. On Facebook, the average monthly reach increased by 28% by the end of September. On a nine-month basis, active customers grew 23% to reach 5.4 million. 37% of these were new customers (+22% vs LY), and these new customers accounted for approximately 37% of total nine-month sales.
Maisons du Monde’s decoration collections continued to meet with success for a total 9M growth of 23% vs last year. Furniture performance also stayed strong despite reduced product availability, growing by 19% over the full 9M period. In the third quarter, sales of decoration items were up unchanged yoy (-0.4%), with good performances also coming from outdoor and small furniture as well as the Junior line.
Online Activity
Nine-month 2021 online sales increased by 28.9% to reach €357 million, representing 36% of total Group sales. Activity benefitted from 1st half store closures, free in-store Click-&-Collect delivery and a state-of-the-art mobile platform (mobile orders represented more than half of all online orders during the period).
In Q3 2021, online sales decreased by only 2.1% yoy to reach €89 million on the back of a very strong outperformance of the 3rd strong quarter last year. Compared to the 3rd quarter of 2019, online sales increased by 21.7%. Activity in France was strong with increases in orders and traffic of +35% and +37%, respectively. Overall, online represented 28% of total Group sales (stable yoy). In terms of products, the quarter’s performance was mainly driven by increased sales of sofas, outdoor furniture and textiles.
The Maisons du Monde selective marketplace, a key component of the Group’s unique omnichannel model, continued its fast growth with GMV totaling €46 million during the period, representing 21% of total online GMV in France for the nine-month period. At the end of September 2021, the marketplace featured over 700 brands and 85,000 SKUs (including a newly introduced Kids offering) and continued to display great momentum, adding nearly 140 new sellers since the beginning of the year. In line with our omnichannel strategy, the marketplace is currently being tested in 40 French stores, with promising results. As planned, it will be rolled out across the entire French store network and launched in another country by early next year.
Store Network
Total 9M21 store sales grew 16.8% to €623 million, despite Covid-related traffic restrictions and the expected transfer of spending to leisure and outdoor activities during summer. Sales in France were €325 million (+9.4% yoy) and represented 52% of total store sales (vs 56% in 9M20), while international sales totaled €298 million (+26.1% yoy).
Total 3rd quarter store sales were broadly stable (-0.9%) at €229 million on the back of a strong Q3 2020 that benefitted from a boost in demand following the end of Covid-related lockdowns. A good transformation rate as well as an increase of the average basket supported by a better mix driven by decoration compensated for softer summer traffic. Store sales in France were €122 million (-5.7% yoy) and represented 53% of total store sales (vs 56% in Q3 2020), while international store sales totaled €107 million (+5.0% yoy).
At 30 September 2021, Maisons du Monde had 350 stores in Europe and 17 stores in the US, compared to 352 and 17, respectively, at 31 December 2020. Total store network commercial area of 439,300 m2 increased 4,700 m2 compared to 31 December 2020. During the quarter, the Group opened 2 new stores: 1 in Saintes, France and 1 in Geneva, Switzerland. During the same period, the Group closed 3 stores in France and 1 store in Italy as part of its continued network optimization.
CSR commitment
Since beginning of 2021, Maisons du Monde has remained focused on further developing its major CSR programs, concentrating on several fronts. During the 3rd quarter, the Group signed the French e-commerce federation’s (FEVAD) responsible e-commerce logistics charter, notably committing to reducing the volume of product packaging and resorting to environmentally-friendly logistics.
This initiative complemented other actions undertaken throughout the year, including the:
ISO 50001 certification of all our French stores, attesting to energy consumption optimization
Signature of our first three year-agreement to promote inclusion of disabled persons in our workforce
Financing of a vaccination program for the benefit of our Indian suppliers (1,300 workers fully vaccinated to date)
Product donations to 21 hospitals in France, Belgium, Italy and Spain
II. Full -Year 2021 Outlook
As we enter the fourth quarter, visibility has improved even if uncertainty remains due to ongoing supply chain disruptions in Asia.
Based on a strong 9M 2021 performance and assuming store activity is not materially disrupted during the rest of year, the Group is raising its full-year guidance as follows:
Top line yoy growth in the low teens (previously: high single-digit)
EBIT marginbetween 9% and 9.5% (previously: increasing up to 50 bps above its 2020 level of 7.3%)
Free cash flow materially above its 2020 level (previously: above)
Slightly higher store count at YE 2021 (previously: broadly stable).
III. Divestment of Modani: Agreement reached to reduce Modanistake to 15%
Maisons du Monde has reached an agreement to reduce its stake in its U.S. joint-venture, Modani, from 70% to 15%. A group of investors led by Optimal Investment Group, a private US investment firm specializing mid-sized acquisitions, has agreed to acquire from Maisons du Monde a 46% stake in Modani, the balance being held by the current minority shareholders. This transaction follows the completion of the strategic review announced in March 2021 and is in line with its new capital allocation strategy. When finalized, it will allow the Group to fully refocus on Europe, where its market knowledge and unique omnichannel model offer better value creation opportunities for Maisons du Monde’s stakeholders. The parties expect to complete the transaction in the coming days.
IV. ESG Impact Share Buy Back Program
Maisons du Monde is launching today a €50 million ESG Impact share buyback program under the authorization given by the annual general meeting of shareholders held on 4 June 2021. This program is part of the Group’s capital allocation policy which is designed to fund profitable growth and create sustainable value for all stakeholders. The Group intends to repurchase shares at market price over a period from 27 October 2021 to May 2022. The ESG component consists of an allocation from the outperformance in purchasing the shares over the program’s execution to the Maisons du Monde Foundation in favor of trees and forests and another not-for-profit organization dedicated to promoting diversity and inclusion in the workforce.
The shares acquired under this buyback program are intended:
to be cancelled to reduce the share capital of Maisons du Monde, and
to meet Maisons du Monde’s obligations arising from employee share programs.
Historical sales
2019
2020
2021
(In €m)
H1 19
Q3 19
9M 19
Q4 19
FY 19
H1 20
Q3 20
9M 20
Q4 20
FY 20
H1 21
Q3 21
9M 21
Sales
564.0
283.7
847.7
377.8
1,225.4
488.9
321.3
810.2
371.9
1,182.1
662.6
317.3
979.9
Change vs. N-1
+9.9%
+9.2%
+10.5%
+9.7%
+10.3%
-13.3%
+13.3%
-4.4%
-1.5%
-3.5%
+35.5%
-1.3%
+20.9%
LFL Change vs. N-1
+4.4%
+3.0%
+3.9%
+2.8%
+3.6%
-17.5%
+9.8%
-8.5%
-2.2%
-6.6%
+35.4%
-3.1%
+20.2%
Maisons du Monde
543.8
271.3
815.1
365.1
1,181.4
467.9
308.8
776.7
356.1
1,132.8
632.0
302.4
934.3
Change vs. N-1
+8.5%
+8.0%
+8.3%
+9.8%
+8.8%
-14.0%
+13.8%
-4.7%
-2.3%
-4.0%
+35.1%
-2.1%
+20.3%
LFL Change vs. N-1
+4.4%
+3.0%
+3.9%
+2.8%
+3.6%
-17.3%
+10.6%
-8.2%
-2.6%
-6.5%
+34.2%
-4.1%
+19.0%
Modani
20.3
11.9
32.1
11.9
44.1
19.7
11.7
31.4
14.9
46.3
28.2
13.9
42.1
Sales breakdown
France
54.5%
53.4%
54.2%
56.6%
54.9%
51.6%
52.8%
52.1%
55.4%
53.1%
50.1%
51.7%
50.6%
International
45.5%
46.6%
45.8%
43.4%
45.1%
48.4%
47.2%
47.9%
44.6%
46.9%
49.9%
48.3%
49.4%
Stores
73.6%
74.3%
73.8%
78.7%
75.3%
61.9%
71.8%
65.8%
69.4%
67.0%
59.5%
72.0%
63.6%
Online
26.4%
25.7%
26.2%
21.3%
24.7%
38.1%
28.2%
34.2%
30.6%
33.0%
40.5%
28.0%
36.4%
Decoration
50.7%
50.7%
50.7%
61.6%
54.0%
48.5%
55.8%
51.4%
62.4%
54.9%
50.1%
56.3%
52.1%
Furniture
49.3%
49.3%
49.3%
38.4%
46.0%
51.5%
44.2%
48.6%
37.6%
45.1%
49.9%
43.7%
47.9%
***
Store network2
(In units)
Number of stores at end of:
Q3 19
Q4 19
FY 19
Q1 20
Q2 20
Q3 20
Q4 20
FY 20
Q1 21
Q2 21
Q3 21
France
227
233
233
228
227
227
228
228
223
222
220
Italy
48
48
48
48
48
48
49
49
49
49
48
Spain
24
27
27
27
27
27
27
27
26
28
28
Belgium
22
24
24
23
23
23
24
24
25
26
26
Germany
10
11
11
11
10
10
11
11
11
12
12
Switzerland
8
9
9
9
9
9
9
9
10
10
11
Luxembourg
3
3
3
3
3
3
3
3
3
3
3
Portugal
1
1
1
1
1
1
1
1
1
1
1
Austria
-
-
-
-
-
-
-
-
1
1
1
United Kingdom
4
-
-
-
-
-
-
-
-
-
-
United States (MDM)
1
2
2
2
-
-
-
-
-
-
-
United States (Modani)
16
18
18
19
18
18
17
17
17
17
17
Number of stores
364
376
376
371
366
366
369
369
366
369
367
Net openings
+6
+12
+27
-5
-5
0
+3
-7
-3
+3
-2
Sales area (K sqm)
416.7
432.3
432.3
431.3
428.5
429.1
434.6
434.6
433.4
438.7
439.3
Change (K sqm)
+8.6
+15.6
+33.9
-1.0
-2.8
+0.6
+5.5
+2.3
-1.2
+5.3
+0.6
***
Disclaimer: Forward Looking Statement
Thispressreleasecontainscertainstatementsthatconstitute"forward-lookingstatements,"includingbutnotlimited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptionsorwhichdonotdirectlyrelatetohistoricalorcurrentfacts.Suchforward-lookingstatementsarebased onmanagement'scurrentexpectationsandbeliefsandaresubjecttoanumberofrisksanduncertaintiesthatcould 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 speakonlyasofthedatehereofandwillnotgiverisetoupdatesorrevision.Foramorecompletelistanddescription ofsuchrisksanduncertainties,refertoMaisonsduMonde’sfilingswiththeFrenchAutoritédesmarchésfinanciers.
*** About Maisons du Monde
Maisons du Monde is a creator of inspirational lifestyle universes in the homeware industry, offering distinctive and affordable decoration and furniture collections that showcase multiple styles. The Group develops its business through a complementary omnichannel approach, leveraging its international network of stores, websites and catalogues. The Group was founded in France in 1996 and has expanded profitably across Europe since 2003, reporting sales of €1,182 million and EBITDA of €241 million in 2020. At 31 December 2020, the Group operated 369 stores in 9 countries including France, Belgium, Germany, Italy, Luxembourg, Portugal, Spain, Switzerland and the United States, and derived 47% of its sales outside France. The Group has also built a successful complementary and comprehensive ecommerce platform, whose sales grew by over 30% per year on average between 2010 and 2020. This platform, enriched by the launch of a marketplace in France in November 2020, accounted for 33% of the Group's sales in 2020 and is available in the countries where it operates stores plus Austria, the Netherlands and the United Kingdom.
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1 Represents the percentage change in sales from the Group’s retail stores, websites and B2B activities, net of product returns between one financial period (N) and the comparable preceding financial period (N-1), excluding changes in sales attributable to stores that opened or were closed during either of the comparable periods. Sales attributable to stores that closed temporarily for refurbishment during any of the periods are included. 2 Excluding franchise stores.
