Made.com has issued a profit warning and said that the trading environment is “more challenging than anticipated”.
The furniture retailer expects it to remain challenging for the remainder of the year, even with better comparable in the second interim.
Made issued guidance with expectations that sales will either stand at 0% in the upper, or -15% year-on-year in the lower.
In both scenarios, adjusted EBITDA will fall between £35m and £15m.
The homeware sector was blamed as a whole, with Made quoting data that suggesting the online furniture market is down between 30% and 40% so far this year.
Despite the grim outlook, the company claimed it expected to outperform the rest of the market this year, with gross sales 10% lower in the first quarter compared to last year.
“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,” Made.com CEO Nicola Thompson said.
“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 three to four 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 has also announced the appointment of Patrick Lewis as its new chief financial officer.
Lewis, who will replace Adrian Evans, has spent the majority of his career at John Lewis Partnership.
Lewis added: “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.”