Maisons du Monde: Sinks to record low on guidance cut

Maisons du Monde SA

31/10/2019 09:55

** Shares in French home decor retailer Maisons du Monde
 MDM.PA  fall 13%, hitting lowest-ever
    ** MDM warned on profits on Wednesday evening, reducing its
FY EBITDA margin target to 12.5% vs 13% previously
    ** According to brokers, the profit warning was due to
higher OPEX at the U.S. Modani brand 
    ** "Tempered EBITDA margin guidance to 12.5% entirely due to
the acceleration of Modani in the US and €7m higher cost,"
Jefferies says in a note
    ** Investors have been troubled by MdM's share price
weakness -- the stock is down 24% YTD -- and this lowering of
guidance is unlikely to help, it adds
    ** Stock is at the bottom of France's SBF 120 Index
 .SBF120  and CAC All-Tradable index  .CACT 
    ** The warning prompts target price cuts from Kepler
Cheuvreux, Midcap Partners and Bryan, Garnier & Co
  

    

 ((Clement.Martinot@thomsonreuters.com))