(BFM Stock Exchange) – The furnishings brand announces sales in net withdrawal at the end of the year, and over the whole of 2024, penalized by a macroeconomic environment which slowed down the purchase intentions.

The end of the year was complicated for Maisons du Monde. The specialized brand is on the front line of the reduction of household expenditure for discretionary goods (understanding “non -essential”), like furniture and decoration.

Between October and late December 2024, his activities suffered again. The group announced this Tuesday, February 4 Tuesday, February 4, a new withdrawal of its sales in the fourth quarter, from 10.6% compared to the same period of 2023, at 295.4 million euros. In comparable data, sales fell 9.5%.

“In France, the slowdown in economic growth, exacerbated by an unstable political climate and persistent uncertainty, has weighed on consumer confidence, resulting in a drop in purchasing intentions, in particular for discretionary goods such as furnishings And the decoration, “says Maisons du Monde.

“This development is consistent with the decline noted as the first nine months of the year (-11.4% including -10.5% on a comparable perimeter)”, judge Oddo BHF.

On the Paris Stock Exchange, the Maisons du Monde action drops another 4.60% after dropping more than 8% in the first exchanges.

Decoration Black Point of Maisons du Monde

In detail, decoration sales – which represent nearly 66% of the group’s turnover – have particularly suffered “like the previous quarters”, notes TP ICAP Midcap in a note. Between October and the end of December, these sales fell 11.2% over a year, a trend that reflects “customers’ wait on discretionary expenses”, according to Maisons du Monde. Furniture sales were contracted by 9.3% over a year.

The specialized brand has multiplied initiatives to relaunch its commercial dynamics, with better availability of its products in stores and a multiplication of promotions for its customers members of its loyalty program.

By distribution channel, online sales have dropped by 10.5% over the last three months of 2024, mainly due to a decrease in traffic in part linked to a reduction in investments in SEA (paid referencing, editor’s note)

Store sales were contracted by 10.5%, while the group continued the “modernization” of its network of stores. In the past quarter, 43 Maisons du Monde stores were entitled to a rejuvenation cure and the objective of renovating 63 stores by the end of 2024 was achieved.

Third year of falling sales

Throughout the year, the turnover of houses around the world is logically down, in an economic environment qualified as “always difficult” by society. In 2024, the group saw its turnover contract 11.3% in published data (-10.2% in comparable data) to land at 1 billion euros.

It is therefore the third year of consecutive withdrawal of the activity for Maisons du Monde. In 2023, sales fell 9.3% and 5.2% a year earlier.

On the sidelines of this publication “overall online” with the expectations of TP ICAP Midcap, Maisons du Monde is pleased to have kept its commitment to reduce costs up to 45 million euros and to have maintained a cash flow Free positive for the year 2024. This last point is “the good news of the publication”, appreciates the design office which feared a free cash flow negative around 10 million euros.

Despite its efforts on its cash management, Maisons du Monde says it has taken the initiative to request an development of its covertors (commitments in debt ratio) to its banking partners.

But for TP ICAP Midcap, this initiative highlights pressure on the expected profitability over the 2024 financial year. Investors will have to wait until March 11, 2025 to read all the results of houses in the world for the past exercise.