PRESS RELEASE
STRONG THIRD QUARTER 2020 ACTIVITY
NANTES –
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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-quarter 2020 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.
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
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.
Summary of sales (in € million) | 3Q20 | 3Q19 | % Change | 9M20 | 9M19 | % Change |
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% | ||
| 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 | ||||||
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% |
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
Online Activity
Online order intake was up by +8% in the third quarter. The order backlog at
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.
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
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 inFrance - Continue to selectively rebuild inventory levels
- Develop our second warehouse in
Northern France
Outlook
In terms of store development,
Thanks to a good third quarter 2020 performance, FY sales are expected to be down mid-single digit yoy assuming most stores in
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Historical sales1
(In €m) | FY 18 | Q1 19 | Q2 19 | Q3 19 | 9M 19 | Q4 19 | FY 19 | Q1 20 | Q2 20 | Q3 20 | 9M 20 | ||||||||||||||
Sales | 1,111.2 | 280.3 | 283.7 | 283.7 | 847.7 | 377.8 | 1,225.4 | 243.7 | 245.2 | 321.3 | 810.2 | ||||||||||||||
Change vs. N-1 | +7.4% | +9.9% | +12.6% | +9.2% | +10.5% | +9.7% | +10.3% | -13.1% | -13.6% | +13.3% | -4.4% | ||||||||||||||
LFL Change vs. N-1 | +3.1% | +2.4% | +6.5% | +3.0% | +3.9% | +2.8% | +3.6% | -8.3% | -16.2% | +9.8% | -8.5% | ||||||||||||||
1,085.4 | 271.4 | 272.4 | 271.3 | 815.1 | 365.8 | 1,181.4 | 231.7 | 236.2 | 308.8 | 776.7 | |||||||||||||||
Change vs. N-1 | +7.4% | +6.4% | +10.7% | +8.0% | +8.3% | +9.8% | +8.8% | -14.6% | -13.3% | +13.8% | -4.7% | ||||||||||||||
LFL Change vs. N-1 | +3.1% | +2.4% | +6.5% | +3.0% | +3.9% | +2.8% | +3.6% | -19.3% | -15.3% | +10.6% | -8.2% | ||||||||||||||
Modani | 25.9 | 8.9 | 11.4 | 11.9 | 32.1 | 11.9 | 44.1 | 11.3 | 8.4 | 11.7 | 31.4 | ||||||||||||||
Rhinov | - | - | - | 0.5 | - | 0.6 | 1.2 | 0.7 | 0.6 | 0.8 | 2.0 | ||||||||||||||
Sales breakdown | |||||||||||||||||||||||||
58.3% | 55.8% | 53.3% | 53.4% | 54.2% | 56.6% | 54.9% | 52.3% | 50.8% | 52.8% | 52.1% | |||||||||||||||
International | 41.7% | 44.2% | 46.7% | 46.6% | 45.8% | 43.4% | 45.1% | 47.7% | 49.2% | 47.2% | 47.9% | ||||||||||||||
Stores | 77.3% | 74.2% | 73.0% | 74.3% | 73.8% | 78.7% | 75.3% | 71.2% | 52.7% | 71.8% | 65.8% | ||||||||||||||
Online | 22.7% | 25.8% | 27.0% | 25.7% | 26.2% | 21.3% | 24.7% | 28.8% | 47.3% | 28.2% | 34.2% | ||||||||||||||
Decoration | 55.7% | 53.2% | 48.1% | 50.7% | 50.7% | 61.6% | 54.0% | 51.7% | 45.3% | 55.8% | 51.4% | ||||||||||||||
Furniture | 44.3% | 46.8% | 51.9% | 49.3% | 49.3% | 38.4% | 46.0% | 48.3% | 54.7% | 44.2% | 48.6% |
Store network2 (In units) | Number of stores at end of: | ||||||||
FY 18 | Q1 19 | Q2 19 | Q3 19 | Q4 19 | FY 19 | Q1 20 | 2Q 20 | Q3 20 | |
221 | 221 | 224 | 227 | 233 | 233 | 228 | 227 | 227 | |
45 | 45 | 47 | 48 | 48 | 48 | 48 | 48 | 48 | |
23 | 23 | 24 | 24 | 27 | 27 | 27 | 27 | 27 | |
22 | 21 | 21 | 22 | 24 | 24 | 23 | 23 | 23 | |
10 | 10 | 10 | 10 | 11 | 11 | 11 | 10 | 10 | |
7 | 7 | 8 | 8 | 9 | 9 | 9 | 9 | 9 | |
Luxembourg | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 |
- | - | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |
4 | 4 | 4 | 4 | - | - | - | - | - | |
1 | 1 | 1 | 1 | 2 | 2 | 2 | - | - | |
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 |
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Besides the financial indicators set out in International Financial Reporting Standards (IFRS),
Sales: Represent the revenue from sales of decorative items and furniture through the Group’s retail stores, websites and B2B activities. They mainly exclude:
- customer contribution to delivery costs,
- revenue for logistics services provided to third parties, and
- franchise revenue.
The Group uses the metric of “Sales” rather than “Total revenue” to calculate growth at constant perimeter, like-for-like growth, gross margin, EBITDA margin and EBIT margin.
Like-for-like sales growth: Represents the percentage change in sales from the Group’s retail stores, websites and B2B activities, net of product returns between one financial period (Y) and the comparable preceding financial period (
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About
corporate.maisonsdumonde.com
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Disclaimer: Forward Looking Statement
This press release contains certain statements that constitute "forward-looking statements," including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions or which do not directly relate to historical or current facts. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could 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 speak only as of the date hereof and will not give rise to updates or revision. For a more complete list and description of such risks and uncertainties, refer to Maisons du Monde’s filings with the French Autorité des marchés financiers.
Contacts
Investor Relations | Press Relations |
cwelton@maisonsdumonde.com | cprat@maisonsdumonde.com |
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Maisons du Monde Third-Quarter 2020 Activity Conference Call and Webcast connection details | |
Tuesday, | |
Conference Call Dial-In Numbers | |
Confirmation Code: 4079553 | |
International Operator +44 (0) 203 009 5709 | |
Toll-Free: | Local Dial: |
Italy +39 8 0098 7313 | Italy +39 06 8750 0892 |
Replay Dial-In Numbers Available until - | |
Confirmation Code: 4079553 | |
International Operator +44 (0) 333 300 9785 | |
Toll-Free: | Local Dial: |
WebcastPlayer URL: | |
https://edge.media-server.com/mmc/p/mmpvnijo | |
1 At current exchange rates.
2 Excluding franchise stores.
Attachment
- 2020 10 27 3Q20 Activity ENG vDEF
© OMX, source