French furniture and décor retailer Maisons du Monde has slipped into the red in 2024 due to inflation and a significant drop in sales, despite efforts to return to growth, according to a statement issued on Tuesday.
The French retailer reported a net loss of €115.3 million for 2024, compared to a profit of €8.8 million in 2023.
In February, the company revealed that its sales had decreased by 11.2% in 2024, totalling €1 billion, following a 9.3% decline the previous year.
François-Melchior de Polignac – who became CEO in March 2023 – attributed the downturn to a "weak economic cycle" and does not expect a swift recovery in 2025, even with the cost-saving measures and strategies announced in 2024.
On Tuesday, the company emphasised its "new ambition for savings": €100 million over three years, up from the previously announced €85 million. In January, it had already announced 91 job losses.
Polignac aims to achieve growth in the second half of 2025 by reducing prices on 4,000 products to move away from a constant promotion approach and boost sales, and simplifying the product range. For instance, the cushion selection will be reduced from 710 to 370 references next year.
"63 stores" have been redesigned to "simplify the customer journey," and new ranges for bathrooms and pet products, previously absent from the shelves, have been introduced. To cut costs, the company has vacated the château in Nantes that housed part of its headquarters and a floor of its Paris offices.
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Maisons du Monde also plans to expand its network of affiliates to transfer some operational costs of underperforming stores and renegotiate store leases.
Given the loss in 2024, the retailer announced it does not intend to pay dividends this year.
