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Made.com has issued a profit warning as gross sales and revenues are expected to drop -15% and -7% respectively, differing from the initial 0% and 7% expected growth in sales and revenue this year.
The company has also appointed Patrick Lewis as its new chief financial officer, with effect from 27 June 2022. He will help lead the next phase of the group’s growth and development, succeeding Adrian Evans, who will step down from the board on 27 June 2022.
Made said that although its performance has “remained strong” compared to pre-pandemic levels, trading has been “volatile” in recent months and more challenging than anticipated at the start of the year.
With a weaker market backdrop for 2022, Made said it now expects to achieve £1.2bn of gross sales later than 2025.
Third-party data suggests that the online furniture and home market is down around 30-40% so far this year. Compared to the market, Made’s gross sales were down only 10% in Q1 compared to Q1 2021, and up 64% compared to 2019.
Additionally, adjusted EBITDA includes one-time costs relating to supply chain disruption of £5m. Working capital will also be higher than planned at the end of the first half, reportedly reflecting improved lead times and weaker market demand, but “significant” adjustments already taken will materially reduce order intake for H2.
Nicola Thompson, CEO, 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.
“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.”
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.”
