(Boursier.com) — Houses of the world advance of 0.7% to 9.5 euros despite the announcement of sales down 12.5% in the first quarter to 273.7 million euros. The group evokes a high basis of comparison as well as a deteriorated macroeconomic context with high inflation, weighing on the purchasing power of households. This resulted in lower traffic, both in-store and online, and a lower conversion rate compared to the same period in 2022. Group GMV stood at €307.2 million , down -6.7% year-on-year (+13.3% vs Q1 2019), with online GMV representing 35.3% of Group GMV, similar to 2022. of the marketplace doubled compared to Q1 2022 to 42.1 million euros, of which 3.3 million euros in stores and 38.7 million euros online.
As reported in March, the start of the year has been difficult for the group. The latter continued to support sales through a number of initiatives, including the inspiring new spring-summer and outdoor collections, as well as targeted promotions, and expects a sequential improvement in sales throughout. of the year.
In line with the 2023 roadmap, articulated around the 3C plan, and given the base effect on the group’s performance in the first half, Maisons du Monde’s 2023 objectives are: a drop in sales, “low- to-mid-single digit”, with an improvement in the second half compared to the first; an EBIT of between 65 and 75 million euros; a free-cash-flow of between 40 and 50 ME; a dividend distribution rate of between 30% and 40%; and an ESG commitment: one third of Maisons du Monde’s 2023 collections included in the ‘Good is beautiful’ selection.
For TP ICAP Market, these targets appear to be in line with consensus expectations. However, the broker still remains cautious on the file and is waiting to see the first effects of the new management. It therefore maintains its ‘hold’ recommendation and its target of 11.8 euros.
Given a macroeconomic environment that remains complicated, the objectives of the medium-term plan (in particular an EBIT margin of 11% in 2025) were suspended in March, recalls Oddo BHF (‘neutral’). Following recent changes in governance, management indicates that it is implementing a “3C” recovery plan (Customers, Costs, Cash) with, in particular, a cost savings envelope of 25 ME (before inflation), which is a important factor for improving profitability. In the medium term, the omnichannel model is a real asset and the broker recalls a certain speculative nature since Teleios holds 24.84% of the capital and Majorelle (Apollo/G. Naouri) 20.34%. Teleios and Majorelle are not acting in concert and have notably undertaken not to hold more than 29.9% of the capital or short-term shares.