Made.com revises full year guidance amid slowing demand for big-ticket items
Furniture retailer Made.com has revised its full year guidance due to weakened consumer confidence leading to reduced demand for discretionary big-ticket items.
In a second quarter trading update, the company said first half group gross sales were 19% down on the prior year, but up 55% on sales in the same period in 2019.
Despite this, the company said it has made strong progress on its strategy around “experience, choice, reach and sustainability” and that the integration of the recently acquired Trouva marketplace is progressing well.
Made said profitability in 2022 is expected to be impacted by around £20 million of non-recurring costs relating to additional promotional and clearance activity due to excess inventory in the business. In addition, the company said it will take a hit from additional costs in the supply chain following disruptions at ports and extra handling at warehouses.
Made now expects to post an adjusted EBITDA loss of between £50 million and £70 million for the year, which is up from a previous forecast of £15 million to £35 million. In addition, it expects gross sales to be 15% to 30% down.
Nicola Thompson, chief executive of Made.com, said: “It’s clear that things are tough for consumers at the moment. Understandably, we’ve seen a worsening in consumer confidence since May and this has had an impact on this period’s performance. As such it’s prudent for us to take a conservative view of what we can expect in the second half of this year.”
