Marks Electrical lowers profit guidance despite rise in sales
Marks Electrical has lowered its full year profit guidance despite higher third quarter sales and growth in market share.
In the three months to 31 December, revenue at the online white goods retailer increased by 17.8% to £35.1 million which meant that sales in the nine months to December were up 22% to £88.9 million.
Marks said its gross product margin did not increase to expected levels due to customers remaining highly price-conscious as a result of cost of living pressures.
Looking ahead, Marks said its revenue growth is likely to be in line with expectations, but said it remains cautious about the speed of recovery in consumer buying patterns.
It now expects full-year EBITDA to be in the range of £5 million to £6 million compared to over £7 million in the past two years.
Marks Electrical chief executive Mark Smithson said: “Whilst I am personally frustrated about our expected margin progression in the second half, I remain confident about our long-term growth prospects and continue to be impressed by our ability to deliver market share gains profitably, against a fiercely competitive backdrop, whilst maintaining the highest levels of customer service standards in the industry.”