Maisons Du Monde, the French furniture and home decor company, has announced a decrease in sales for the fourth quarter of the previous year. The decline is attributed to varying inflation levels and low discretionary spending.
According to the company, sales fell by 7.9% to €329.6 million ($358.8 million) during the fourth quarter. For the full year of 2023, sales dropped by 9.3% to €1.12 billion, slightly better than the company's expected decline of around 10%.
Additionally, the gross merchandise value of Maisons Du Monde decreased by 5.5% during the fourth quarter, totaling €367.9 million.
The sluggish discretionary consumption in Europe, affected by fluctuating inflation and volatile consumer confidence, contributed to the decline in sales. Despite these challenges, Maisons Du Monde has expressed confidence in its 2023 guidance, which was revised downward in October.
The company aims to achieve earnings before interest and taxes between €40 million and €50 million, along with free-cash-flow ranging from €20 million to €30 million.
Detailed results for the full year will be revealed on March 12.
*Originally written by Nina Kienle.
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