Made.com slashes outlook as sales shrink and losses deepen

Made.com has slashed its revenue and profit forecasts for the current year, blaming volatile trading and worsening consumer sentiment.

The online furniture retailer on Tuesday said it now expected gross sales for 2022 to fall by between 15 and 30 per cent, against a previous forecast of flat to 15 per cent growth made in May.

The company now expects to make a loss before interest, tax, depreciation and amortisation of between £50mn and £70mn, having previously expected a loss of no more than £35mn.

There will also be about £20mn of non-recurring costs around
additional promotional activity to clear excess inventory and additional supply chain costs, mostly incurred during the first half.

Nicola Thompson, chief executive, said it was clear that things were
“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,” she 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.”

Made.com shares, which listed at 200p in June 2021, have lost more than 80 per cent of their value over the past year.