Maisons du Monde: share jumps 11%; sales above estimates

(CercleFinance.com) - The share is jumping 11% on Friday, after the group announced Q1 sales that are up 9.
9% to 280 million euros on Thursday evening. Indeed, Oddo says that the group has posted sales that exceed expectations. Following this publication, analysts confirm their buy rating on the share, with a target price of 27.5 euros.

Oddo said that at a strictly comparable consolidation scope, growth reaches 2.4%, which is pretty good performance (Oddo estimates +0.6% and the consensus +1.6%), considering that, over the period, the group has suffered from an unfavourable comparison basis (Q1 2018 LFL growth of +5.1%).

Maisons du Monde has confirmed its FY targets, with in particular sales growth continuing at around +10%. Oddo says that its EBITDA margin is expected to reach over 13%, which is consistent with its own expectations (13.4% vs. 13.3% in 2018), meaning a 10.8% increase in EBITDA to 164 million euros, Oddo says.

From a geographic point of view, the group will continue to focus on store openings outside France (2/3 of openings) and especially on Germany (5% of its network abroad), where organic growth is strong (over 10% in 2018). Regarding its gross margin, this will continue to suffer from the development of Furniture (impact -30/-40 bp approximately), the broker adds.


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