'No bad news is good news': Maisons du Monde performance, buyback reassure

Maisons du Monde SA

28/07/2022 09:57

** Shares in Maisons du Monde  MDM.PA  soar almost 8% as the
French home decor retailer's H1 results and FY guidance
confirmation reassure  urn:newsml:reuters.com:*:nASM000L1W
    ** "Given the adverse environment, we think (...) H1 results
slightly ahead of consensus and the reiteration of 2022 guidance
should be enough to re-assure investors," an analyst says
    ** The analyst points out the recent share price decline
integrated the view of many that Maisons du Monde would have to
revise objectives once again with this publication
    ** The analyst also notes the group's initiatives to limit
the impact of a tougher environment seemed ambitious enough to
meet its FY guidance and provide relief to investors
    ** Maisons du Monde, which plans to repurchase up to 10% of
its outstanding shares, reported H1 EBIT down 40.7% to EUR 28.4
mln ($28.99 mln), net income down 59% to EUR 8.4 mln
    ** "The stock was so low that no bad news is good news,"
says Midcap Partners analyst Florent Thy-Tine, adding that the
share buyback could also explain the positive market reaction
    ** The stock is down by about 51% YTD

($1 = 0.9795 euros)

 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))