Made.com posts widening losses and puts itself up for sale
Made.com reported wider half-yearly losses as the British online furniture retailer struggled with higher costs and heavy discounting.
The news comes as consumers have cut back on non-essential purchases such as furniture and face a worsening cost-of-living crisis with prices of everything from food to fuel rising.
“The first half of the year was a challenging time for the global economy and particularly for the retail sector,” said Chief Executive Officer Nicola Thompson.
The retailer last week started laying off staff and reviewing options including a potential sale barely over a year after going public. It said the layoffs would help reduce annual costs by 6 million pounds.
“The Group has faced a significant reduction in demand which has been difficult for the business and its stakeholders,” Thompson said.
The company said loss before tax came in at 35.3 million pounds in the six months to June 30, compared with 10.1 million pounds a year earlier.
The group said it had taken “prompt action” to clear excess stock with a blitz of discounts. Stock levels had been reduced from £63m at the end of the year to £44m at the end of the first-half of the year, bringing levels more closely aligned with demand moving forward, the company said.
The firm only made its debut on the London Stock Exchange in January, with a valuation of £775m. Made’s share price has taken a hammering to the tune of 97 per cent over the past year to date, with shares closing up 24 per cent on Thursday.