MAISONS DU MONDE: Soft Q2, poor Q3 ahead and opening delays prompt a sales warning for 2018
MAISONS DU MONDE: (BUY, Fair Value EUR39 vs. EUR41 (+39%))Soft Q2, poor Q3 ahead and opening delays prompt a sales warning for 2018
Maisons du Monde reported a weak Q2 sales growth (+8% excl. Modani, in line with expectations) along with a strong profitability (stable EBITDA margin, ahead of expectations). The management revised down its sales growth guidance for 2018 (+8% excl. Modani vs +10% previously) with : 1/ 1pp coming from poor LfL (poor Q2 and Q3 to be affected by circumstantial elements and a softer environment); and 2/ 1pp due to the postponement of 6 store openings from H2 2018 to Q1 2019 (should be opened on top of the existing 2019 opening plan of 25-30 net openings). FV cut from EUR41 to EUR39. Even if the stock could go through a zone of turbulence in the short term (poor Q3 ahead), with confirm our Buy recommendation for the medium term as we still believe in Maisons du Monde’s capacity to outperform the market through a profitable and value-creating growth.
Maisons du Monde offers a range of decoration and furnishing items in a variety of styles and themes. At end-2016, Co. operated a network of 288 stores in seven countries, France, Italy, Spain, Belgium, Luxembourg, Germany, and Switzerland. It also operates an e-commerce platform available in 11 countries. Co.'s product offering contains approximately 16,000 stock-keeping units available in a range of prices. The offer falls into two categories: decorative products, such as household textiles, tableware and kitchenware, mirrors and picture; and furniture, such as beds, tables, chairs, armchairs and sofas, cupboards, bookshelves, junior furniture and outdoor furniture.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
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