Maisons du Monde has broken through the 1 billion euro barrier in 2017. The French furniture chain continues its sturdy growth, also in the United Kingdom, but still adjusted its full-year forecast downward.
Solid climb into profitability and above 1 billion
Over the past year, Maisons du Monde’s turnover grew 14.6 % to 1.01 billion euro. Stores that have been open for more than twelve months, generated a 7.4 % turnover increase. Net profit also passed a symbolic barrier: it turned a 12 million euro loss into a 63 million euro profit.
Its operational profit grew 14.7 % to 106.8 million euro, but its gross margin dropped slightly, from 67.1 to 66.6 %, which brings expectations in line with its own expectations: “With a solid increase in sales and EBITDA, Maisons du Monde delivered another year of profitable growth in 2017,” CEO Gilles Petit said.
20 % of sales online, despite 25 new stores
By the end of the year, the interior design chain had opened another 25 stores, mainly in the second half of the year. It added two new franchise stores in Dubai and Doha (Qatar), a new corner in department store chain Printemps Nation and a new showroom in Paris.
Nevertheless, Maisons du Monde’s online sales also surged ahead and contributed 21 % to its overall turnover thanks to a 24 % increase. Petit claims this proves that the chain’s omnichannel strategy is successful. The company also invested in a new CRM system last year.
British launch weighs down 2018 forecast
Despite all those positive notions, Maisons du Monde has forecast a lower growth than it had originally mentioned in its long-term plans. It now targets a 10 % turnover increase, while it had forecast a 12 to 14 % annual turnover increase. A stronger base for comparison considering last year’s excellent results and the planned new store investments will probably lower its current surge. ““We count on increasing our marketing expenses during the whole duration of the plan,” the CEO explained to Reuters. “The acquisition of clients, particularly internationally, is expensive (…) we want to give ourselves the means to finance our growth,” he said.
Maisons du Monde will also venture in the British market in 2018: it signed a deal to create corners in Debenhams’ department stores. The French company aims to open 25 to 30 stores his year. “2018 will be a year where we will continue our action plans and commercial innovations.”
