Made.com has slashed its full-year outlook, citing supply chain costs and low consumer confidence.
The online furniture retailer has lowered its annual sales and earnings outlook and does not anticipate an increase in demand for big-ticket items, such as sofas, anytime soon.
For 2022, Made.com now expects gross sales to fall between 15% and 30%, having previously guided a flat to down 15% performance.
The company also forecast a core loss between £50m and £70m, down from previous guidance for a loss of £15m to £35m.
As a result, Made.com has announced a strategic overhaul, with management “actively addressing all non-strategic fixed costs” across the business.
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This will ensure the business operating model is flexible for the new environment and better positioned to deliver the long-term strategic goals.
Key areas of focus include looking at forward stock buying, warehousing and sourcing markets, and reviewing operational structure and headcount.
“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,” Made.com chief executive Nicola Thompson said.
“As such it’s prudent for us to take a conservative view of what we can expect in the second half of this year.
“It’s thanks to the hard work and determination of our team at Made that we’ve made strong strategic progress over this period, despite the challenging macroeconomics. Looking at our performance over recent years, we have managed to grow the business by 57% since 2019, our last undisrupted year, and increased our market share.
“To enable us to continue executing on our strategy we’re taking steps to address the non-strategic costs in the business, as well as considering options to allow us to strengthen the balance sheet sufficiently to navigate what will undoubtedly continue to be challenging conditions. We’re confident that this will put us in a strong position for the coming years.”
