- Made.com Tumbles 37.79%.
- H1 gross sales declined 19% compared to prior year.
- Made.com slashes sales and earnings guidance.
Made.com reported its trading update and revised guidance on Tuesday, causing its shares to decline 37.79%.
The company reported despite the volatile market backdrop, Made.com saw “strong progress on its strategy.” Hmmm, I’m not so sure its share price agrees.
The furniture retail store reported H1 gross sales growth for the UK was 45% higher against 2019. However, gross sales fell 19% compared to the prior year. H1 trading was impacted by worsening consumer sentiment.
Customer metrics show a 5% decrease in the growth of active customers compared to the prior year.
“It’s clear that things are tough for consumers at the moment,” said CEO of Made.com Nicola Thompson.
Thompson continued, “Understandably, we’ve seen a worsening in consumer confidence since May and this has had an impact on this period’s performance.”
Meanwhile, inflation costs in the supply chain continue to elevate, with freight costs higher than expected. Can anything lift the mood a little…
And that only continues as the company slashes its guidance. Maybe not. Made.com does not expect near-term improvement in big-ticket demand nor in new customer acquisition.
The revised guidance forecasts a 15% to 30% fall in gross sales, compared to the previous guidance of 0% to 15%.
Furthermore, Made anticipates a loss of £50 million to £70 million compared to a loss of £15 million to £35 million previously envisioned.
Made.com shares were initially listed on the London Stock Exchange in June last year at a valuation of £775 million. Since then, the stock has fallen to £151 million after Monday’s close. A tough read for Made.com shareholders.