Maisons du Monde plunges on surprise guidance cut

Maisons du Monde SA

27/05/2022 08:33

** Shares in Maisons du Monde  MDM.PA  plummet 22% to their
lowest price since November 2020, after the French home
furnishings company on Thursday cut FY guidance citing inflation
in Europe, the pandemic in China and high freight, raw material
and energy costs  urn:newsml:reuters.com:*:nL5N2XJ0JR
    ** The company now expects its sales to decline in
mid-single-digit percentage, against anticipated sales growth
previously, and EBIT margin of 5% or above vs previous estimate
of around 9%
    ** Maisons du Monde forecasts FY free cash flow of 10-30
million euros ($10.75 million-$32.24 million), against 65-75
million previously 
    ** Midcap Partners says the new guidance is a surprise as
the company had confirmed the outlook a few weeks ago, while the
situation hasn't changed since
    ** Including today's fall, the stock has dropped by around
32% YTD​

($1 = 0.9305 euros)

 (Reporting by Olivier Sorgho)
 ((Olivier.sorgho@thomsonreuters.com))