PRESS RELEASE
MAISONS DU MONDE:
STRONG THIRD QUARTER 2020 ACTIVITY
NANTES - 27 October 2020, 17:45 CET - Maisons du Monde(Euronext Paris: MDM; ISIN: FR0013153541), a European leader in affordable and inspirational household decoration and furniture, today announces its third-quarter 2020 sales.
- Third quarter sales up 13.3% yoy: €321 million(+9.8% LFL)
- Strong store sales: +9%
- Continued online momentum: +24%
- Top line growth driven by success of decoration collections (+25%)
- FY sales expected to be down mid-single digit yoy, assuming most stores in Europe remain open through year-end
Julie Walbaum, Chief Executive Officer, declared: "We are proud of our third quarter performance, which shows the skills and commitment of all our teams. The solid sales trends we observed both in stores and online attest to the strength and resilience of our business model. The performance of our decoration collections, up 25% year-on-year, vindicates the work we have launched to sharpen our collections. The lower growth in furniture sales is a reflection of temporary shortages resulting from a surge in demand and systemic pressure on the furniture supply chain, and we are actively working to address this issue.
The environment in which we are operating remains uncertain regarding the evolution of the pandemic. In this context, we enter the important holiday season fully focused on our key commercial and strategic priorities: Continuing to offer our customers a quality and safe omnichannel experience, rebuilding inventory and working on our strategic projects, including the launch of our curated marketplace and the development of our second warehouse."
Third-Quarter 2020 Activity
Sales
The Group's third-quarter2020 sales totaled €321 million, representing an increase of 13.3% year- on-year (yoy) (+9.8% LFL), driven by strong growth in both store and online sales. Maisons du Monde sales were up 13.8% to €309 million (+10.6% LFL) while Modani's sales of €11.7 million were roughly unchanged (-1.1%). Rhinov added €0.8 million (+32% yoy).
Online sales increased by 24.4% to reach €91 million, representing 28% of total Group sales. Total 3rd quarter store sales grew 9.4% to €231 million, supported by robust decoration sales amidst stable traffic yoy despite social distancing restrictions.
Sales in France were €170 million (+12.0% yoy) and represented 53% of total sales (vs 53% in Q3 2019), while international sales totaled €152 million (+14.7% yoy).
In terms of sales split by product category, decoration sales increased by 24.7% yoy and represented 56% of total 3rd quarter sales, gaining 510 basis points in the mix. This more than compensated for stable furniture sales (+1.5% yoy), due to sub-optimal inventory levels as a result of a reduction in furniture orders early in the pandemic to protect cash, a surge in demand at the end of the lockdown and production challenges at suppliers following the coronavirus pandemic.
1
Summary of sales | 3Q20 | 3Q19 | % | 9M20 | 9M19 | % |
Change | Change | |||||
(in € million) | ||||||
Sales | 321.3 | 283.7 | +13.3% | 810.2 | 847.7 | -4.4% |
% like-for-like change | +9.8% | +3.0% | -8.5% | +3.9% | ||
Maisons du Monde | 308.8 | 271.3 | +13.8% | 776.7 | 815.1 | -4.7% |
% like-for-like change | +10.6% | +3.0% | -8.2% | +3.9% | ||
Modani | 11.7 | 11.9 | -1.1% | 31.4 | 32.1 | -2.2% |
Rhinov | 0.8 | 0.6 | +31.7% | 2.0 | 0.6 | |
Sales by distribution channel | ||||||
Stores | 230.7 | 210.8 | +9.4% | 533.3 | 625.9 | -14.8% |
Online | 90.6 | 72.9 | +24.4% | 276.9 | 221.8 | +24.8% |
Stores (%) | 71.8% | 74.3% | 65.8% | 73.8% | ||
Online (%) | 28.2% | 25.7% | 34.2% | 26.2% | ||
Sales by geography | ||||||
France | 169.8 | 151.5 | +12.0% | 421.9 | 459.0 | -8.0% |
International | 151.6 | 132.2 | +14.7% | 388.3 | 388.7 | -0.1% |
France (%) | 52.8% | 53.4% | 52.1% | 54.2% | ||
International (%) | 47.2% | 46.6% | 47.9% | 45.8% | ||
Sales by product category | ||||||
Decoration | 179.4 | 143.9 | +24.7% | 416.4 | 429.7 | -3.1% |
Furniture | 141.9 | 139.8 | +1.5% | 393.8 | 418.1 | -5.8% |
Decoration (%) | 55.8% | 50.7% | 51.4% | 50.7% | ||
Furniture (%) | 44.2% | 49.3% | 48.6% | 49.3% |
Store Network
At 30 September 2020, Maisons du Monde's global store network stood at 366 stores, stable compared to the end of June 2020. During the third quarter of 2020, Maisons du Monde opened one store in Saint-Etienne and closed one store in Béziers, France. Over the same period, the Group repositioned its existing store in Granada, Spain with a larger one. Total commercial space increased by 915 square meters during the quarter to reach 429,100 square meters at 30 September 2020.
Online Activity
Online order intake was up by +8% in the third quarter. The order backlog at 30 September 2020 was down compared to the end of June 2020 but remains at a high level compared to 30 September 2019. The order delivery challenges, resulting from the saturation of the parcel delivery network in France and other European Union countries that developed during the Covid-19 lockdown, are now completely solved.
Supply Chain
Inventory challenges, limited to furniture, were more than offset in the third quarter by robust decoration sales where inventory remains at normal levels. The sub-optimal furniture inventory level is expected to gradually improve over the next months.
2
Cash Management
As expected, the Group reimbursed in September the €150 million relating to the two revolving credit facilities that were drawn down in March following the Covid lockdown in Europe. Available cash at 30 September 2020 was €299 million compared to €423 million at 30 June 2020.
Fourth-quarter 2020 commercial priorities, current activity and outlook
Commercial and operational priorities
For the remainder of 2020, the Group's commercial priorities are to:
- Continue to provide a safe and quality omnichannel experience in still unusual circumstances
- Launch the Maisons du Monde curated marketplace in France
- Continue to selectively rebuild inventory levels
- Develop our second warehouse in Northern France
Outlook
In terms of store development, Maisons du Monde anticipates circa 7 to 8 net store closures in the full year (10 net closures in 9M 2020).
Thanks to a good third quarter 2020 performance, FY sales are expected to be down mid-single digit yoy assuming most stores in Europe remain open through year-end.
***
3
Historical sales1
(In €m)
Sales
Change vs. N-1
LFL Change vs. N-1
Maisons du Monde Change vs. N-1
LFL Change vs. N-1
Modani
Rhinov
FY 18 | Q1 19 |
1,111.2 | 280.3 |
+7.4% +9.9%
+3.1% +2.4%
1,085.4271.4
+7.4% +6.4%
+3.1% +2.4%
25.9 8.9
- -
Q2 19 | Q3 19 | 9M 19 | Q4 19 | FY 19 |
283.7 | 283.7 | 847.7 | 377.8 | 1,225.4 |
+12.6% | +9.2% | +10.5% | +9.7% | +10.3% |
+6.5% | +3.0% | +3.9% | +2.8% | +3.6% |
272.4 | 271.3 | 815.1 | 365.8 | 1,181.4 |
+10.7% | +8.0% | +8.3% | +9.8% | +8.8% |
+6.5% | +3.0% | +3.9% | +2.8% | +3.6% |
11.4 | 11.9 | 32.1 | 11.9 | 44.1 |
- | 0.5 | - | 0.6 | 1.2 |
Q1 20 | Q2 20 | Q3 20 | 9M 20 |
243.7 | 245.2 | 321.3 | 810.2 |
-13.1% | -13.6% | +13.3% | -4.4% |
-8.3%-16.2% +9.8% -8.5% | |||
231.7 | 236.2 | 308.8 | 776.7 |
-14.6% | -13.3% | +13.8% | -4.7% |
-19.3%-15.3% +10.6% -8.2% | |||
11.3 | 8.4 | 11.7 | 31.4 |
0.7 | 0.6 | 0.8 | 2.0 |
Sales breakdown | ||
France | 58.3% | 55.8% |
International | 41.7% | 44.2% |
Stores | 77.3% | 74.2% |
Online | 22.7% | 25.8% |
Decoration | 55.7% | 53.2% |
Furniture | 44.3% | 46.8% |
53.3% | 53.4% | 54.2% | 56.6% | 54.9% |
46.7% | 46.6% | 45.8% | 43.4% | 45.1% |
73.0% | 74.3% | 73.8% | 78.7% | 75.3% |
27.0% | 25.7% | 26.2% | 21.3% | 24.7% |
48.1% | 50.7% | 50.7% | 61.6% | 54.0% |
51.9% | 49.3% | 49.3% | 38.4% | 46.0% |
52.3% | 50.8% | 52.8% | 52.1% |
47.7% | 49.2% | 47.2% | 47.9% |
71.2% | 52.7% | 71.8% | 65.8% |
28.8% | 47.3% | 28.2% | 34.2% |
51.7% | 45.3% | 55.8% | 51.4% |
48.3% | 54.7% | 44.2% | 48.6% |
Store network2 | Number of stores at end of: | ||||||||
(In units) | FY 18 | Q1 19 | Q2 19 | Q3 19 | Q4 19 | FY 19 | Q1 20 | 2Q 20 | Q3 20 |
France | 221 | 221 | 224 | 227 | 233 | 233 | 228 | 227 | 227 |
Italy | 45 | 45 | 47 | 48 | 48 | 48 | 48 | 48 | 48 |
Spain | 23 | 23 | 24 | 24 | 27 | 27 | 27 | 27 | 27 |
Belgium | 22 | 21 | 21 | 22 | 24 | 24 | 23 | 23 | 23 |
Germany | 10 | 10 | 10 | 10 | 11 | 11 | 11 | 10 | 10 |
Switzerland | 7 | 7 | 8 | 8 | 9 | 9 | 9 | 9 | 9 |
Luxembourg | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 |
Portugal | - | - | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
United Kingdom | 4 | 4 | 4 | 4 | - | - | - | - | - |
United States (MDM) | 1 | 1 | 1 | 1 | 2 | 2 | 2 | - | - |
United States (Modani) | 12 | 13 | 15 | 16 | 18 | 18 | 19 | 18 | 18 |
Number of stores | 349 | 349 | 358 | 364 | 376 | 376 | 371 | 366 | 366 |
Net openings | +25 | 0 | +9 | +6 | +12 | +27 | -5 | -5 | 0 |
Sales area (K sqm) | 398.4 | 398.6 | 408.1 | 416.7 | 432.3 | 432.3 | 430.9 | 428.2 | 429.1 |
Change (K sqm) | +35.2 | +0.2 | +9.5 | +8.6 | +15.6 | +33.9 | -1.4 | -2.7 | +0.9 |
- At current exchange rates.
- Excluding franchise stores.
4
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Maisons du Monde SA published this content on 27 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2020 16:59:05 UTC