Q1 sales of 313 ME were broadly stable

(boursier.com) — Houses of the world today announced group sales for the first quarter of 2022. Q1 2022 sales of €313 million were broadly flat year on year (-1.3%; -4% APC) compared to the exceptionally high level of the first quarter of 2021 (EUR 317 million, an increase of 37% compared to 2020).
In the first quarter of 2022, this performance benefited from the beneficial effect of the effectiveness of supply chain monitoring, which allowed the Group to ship a higher volume of customer orders than expected, offsetting less dynamic than expected demand. quarter.
Compared to the first quarter of 2019 before the pandemic, the Group’s total sales increased by 15% in the first quarter of 2022.

Total operating volume (GMV), at €329 million, was stable year on year due to a very strong 43% increase in the market’s GMV. Compared to the first quarter of 2019, the GMV has increased by 21%, illustrating the launch of the marketplace in France at the end of 2020.

Sales of the Decoration category remained unchanged from the first quarter of 2021 at €175 million, thanks to a very high comparator base in 2021, which had registered a growth of +39% compared to 2020. Compared to the first quarter of 2019 sales in the category increased by 17%, illustrating the success of the update of the collections carried out since 2019. The Maisons du Monde decoration collections continue to be a great success, especially the tableware and garden household items subcategories.

Furniture inventories continue to be impacted by supply chain disruptions and sales in Q1 2022 have therefore slightly decreased (-2%). They represent 44% of the total group turnover (-0.5 percentage point compared to Q1 2021). Once again, the high comparison base for the first quarter of 2021 (+34% vs. Q1 2020) distorts the reading. Compared to the first quarter of 2019, sales in the furniture category increased by 13%, although product availability is not yet on track. Furniture inventories improved over the period with a sourcing program in line with schedule, despite the complexity of the environment. Some manufacturing and freight operations are currently hampered by the resurgence of the COVID outbreak in China. The Group relies on its proven flexibility to monitor the situation closely and optimize its production and delivery plans.

Maisons du Monde’s selective market continued its rapid growth, totaling €20 million in the period (+43% year-on-year). At the end of March 2022, the marketplace had more than 1,100 brands and 140,000 references. Maisons du Monde continues to roll out its omnichannel strategy and the marketplace is now available in all French stores.
In addition, at the end of the quarter, the marketplace was expanded for the first time outside of France, as it is now available in Spain, where it includes nearly 50,000 references and more than 290 brands.

Sales by geographic area

Sales in France reached €162 million (52% of total sales), a decrease of 11% compared to Q1 2021, but an increase of 3% compared to Q1 2019, in a context of product underavailability.
In France, store sales reached €114 million, down 9% year-on-year, but at an overall stable level compared to Q1 2019, despite a net reduction of 7 stores over a 3-year period. They represent 55% of total in-store sales, or -9 percentage points compared to the first quarter of 2021.
In France, online sales declined 15% year-on-year, but outperformed the first quarter of 2019 by 33%.

International turnover amounted to 151 million euros, an increase of 12% compared to the first quarter of 2021 and a peak of 32% compared to 2019. They represent 48% of total turnover (+6 percentage points compared to 2019).

International growth is fueled by new store openings (+23 net openings since Q1 2019) and a channel mix more focused on online sales, representing 37% of international sales in Q1 2021 compared to 31% in Q1 2019.

International store turnover increases by 32% to 95 million euros, thanks to the addition of 10 stores to the international network since the end of March 2021.
Compared to the first quarter of 2021, international sales also benefited from a reduced comparator base in 2021, a fiscal year still affected by store closures, particularly in Germany, Spain and Italy.

Grouping commercial priorities for the rest of 2022

Further strengthening Maisons du Monde’s omnichannel model at the service of customers;
Selective replenishment and active management of supply constraints;
Protecting the Group’s profitability through rigorous cost control, while advancing the strategic agenda;
Continued efforts in corporate social responsibility.

Elements of objectives for 2022

In an environment that remains complex and volatile, the Group sees a slow start to the half year and believes that the momentum of the second quarter will be held back by the global inflation context and its impact on demand, in parallel with resulting delays of the resurgence of the COVID epidemic in Asia that could affect sourcing programs. Consequently, sales should be slightly negative in the first half. The second half will benefit from the increase in inventory levels, especially in furniture, which support the acceleration of sales, and from a more favorable basis for comparison.

In this context and without further deterioration of the macroeconomic environment and supply conditions, the group confirms its objectives for the fiscal year 2022:

Positive revenue growth, to be refined as visibility improves

EBIT margin around 9%; Free cash flow between 65 million and 75 million euros.

Reduction of the Group’s overall carbon intensity: carbon neutrality for scopes 1 and 2;
Dividend payout ratio between 30% and 40%.

Julie WALBAUM, Chief Executive Officer of Maisons du Monde, said: “Our first quarter performance is fully in line with our forecasts, despite the international macroeconomic and geopolitical context and ongoing supply chain disruptions. Global activity showed a continued rise in pre-pandemic levels, with double-digit growth from the first quarter of 2019. Our pan-European omnichannel model continues to prove its relevance, as do our brand reach and unique product offering.
We are moving forward with determination and energy towards sustainable growth. At the end of March, we expanded our selective marketplace to a new country, Spain. In France and Spain, our marketplace now includes more than 140,000 references and 1,100 brands. In addition, following our goal, we are proud to have unveiled our CSR movement “Good is beautiful” in February, formulated around five pillars of environmental and social engagement, with targets and milestones for each ambitious, in particular carbon neutrality on scope 1 and 2 from this year.
Trusting in our model, we will maintain our priority in serving our customers and protecting our profitability in an environment that remains complex and volatile. Visibility remains limited between now and the end of the financial year. Without a further deterioration in the macroeconomic environment and supply conditions, we confirm our targets for the fiscal year 2022″.

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