Half Year 2025 Maisons du Monde SA Earnings Call Transcript
Key Points
- Maisons du Monde France SA (XPAR:MDM) reported a rebound in online traffic in Q2 2025, both paid and organic, with improved brand awareness by 2.5 points.
- The company successfully rolled out an AI replenishment tool across Europe, enhancing inventory allocation efficiency.
- Affiliated stores showed resilient performance, with successful international expansion marked by a new store opening in Spain.
- The company maintained its gross margin rate despite a challenging promotional environment.
- Maisons du Monde France SA (XPAR:MDM) achieved EUR18 million in cost savings in H1 2025, contributing to its EUR110 million cost-saving plan over three years.
- Net sales declined by 9.7% compared to the previous year, with a negative EBIT of minus EUR22 million.
- The company reported a negative free cash flow of minus EUR65 million, largely due to significant inventory buildup.
- The French retail market and online sales faced significant challenges, requiring substantial efforts for improvement.
- The company's debt increased to EUR156 million, influenced by the temporary increase in working capital from inventory buildup.
- Maisons du Monde France SA (XPAR:MDM) experienced a decline in furniture sales, attributed to channel mix issues, particularly in online business.
Thank you, and good evening, everyone. Thank you for attending Maisons du Monde first-half '25 results. So let's go directly to the top line. Net sales are down 9.7% versus last year, and minus 8.7% on a like-for-like basis. Of course, we are not satisfied with the figures. Yet, what is most important to us is the positive dynamic we are now seeing with a clear sequential improvement from H2 '24 and Q1 '25 to Q2 '25.
This is also more of the case as trends have been also improving (technical difficulty) among our recent initiatives, I'd like to emphasize a few key highlights. First, we continued to refine our marketing strategy moving towards a more efficient balance between offline and online communication with a clear focus on strengthening our brand. The actions we've taken are starting to pay off. We saw a rebound in online traffic in Q2, both paid and organic, while brand awareness improved by 2.5 points in H1 '25, outperforming every competitor during the same
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