Lifestyle brand Made.com lowered its expectations for the rest of 2022, with both gross sales and revenue expected to drop 15 per cent and seven per cent respectively.
These projected figures differ from the initial zero per cent and eight per cent expected in sales and revenue this year.
Although MADE’s performance has remained strong versus pre-pandemic levels, trading has been volatile in recent months for the company and “more challenging than anticipated at the start of the year”, it said this morning.
Third-party data has suggested that the online furniture and home market is down around 30-40 per cent so far this year.
Looking ahead, MADE’s outlook remains quite bleak, and continues on the assumption that the market will remain highly challenging for the rest of 2022.
Spot freight rates continue to normalise in line with previous expectations for the firm, but lower sales mean the benefit will be reflected in gross margin later in 2022 than previously anticipated.
The London headquartered firm said it still expects 2022 exit rate gross margin to be around pre-pandemic levels and business shape will be set for the new operating environment.
The furniture seller expects adjusted EBITDA to hit £-35m and year-end net cash within the region of £40-45m
Commenting on the outlook, chief executive Nicola Thompson said:“There is no escaping the tough trading environment at the moment. However, we are laser focused on executing our strategy and we are delivering strong progress across each of our strategic pillars.
“Our customers are at the heart of our business and we’re seeing a really positive reaction to our improved proposition, with average lead times consistently at the targeted 3-4 weeks average for the last two months.
“MADE continues to outperform the online furniture and home market and I am confident the company will emerge in a very strong position.”
The company also took the opportunity to announce that former John Lewis board member Patrick Lewis would be joining MADE as a Chief Financial Officer.
He will be replacing Adrian Evans from next month and aid MADE’s growth and development.
Lewis has spent much of his career in leadership roles on the John Lewis Partnership Board, most recently as Chief Financial Officer.
As part of this role, he led a supply chain improvement programme and built strong relationships with key stakeholders in restructuring the John Lewis Partnership balance sheet.
Commenting on his appointment, Lewis said: “I am delighted to be joining MADE, a company I have admired and watched with great interest. I am very much looking forward to working with CEO Nicola Thompson and the wider team as we continue to deliver against the company’s strong strategy.”