MADE.com Group PLC slumps again as shoppers shun large items

Made.com Group PLC (LSE:MADE) saw its shares fall 13% to 55.2p after warning that trading had been tougher than expected this year.

Third-party data suggests the online furniture and home market is down about 30-40% so far this year, the company said, and while Made.com has outperformed the market, with first quarter sales down 10% year over year. year, the group resigned itself to the market remaining difficult for the rest of the year.

“We remain very confident that MADE will continue to outperform the online home and furniture market by at least 20 percentage points,” the company said as it released new full-year guidance for several key metrics.

It now expects net income to be 7% to 8% higher for 2022 compared to 2021, while loss before interest, tax, depreciation and amortization is expected to be between £15m (best). scenario) and £35 million (worst-case scenario). Case).

The group said it still expects the 2022 exit rate to be around pre-pandemic levels, but falling sales mean recovery to pre-pandemic levels will occur later in the year. year than expected.

“With a much weaker market backdrop for 2022, we now expect to reach £1.2 billion in gross sales by 2025 at the latest. The board remains very confident in the long-term value drivers company,” he added.

“There is no escaping the difficult business environment at the moment; however, we are focused on executing our strategy and making solid progress in each of our strategic pillars. Our customers are at the heart of our business and we are seeing a really positive reaction to our improved proposition, with average lead times still at the target average of 3-4 weeks for the past 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,” said Nicola Thompson, CEO of MADE.com.

In other news, the online retailer said it has appointed former John Lewis CFO Patrick Lewis as CFO.

The online lifestyle brand said Lewis, currently non-executive director of Sanderson Design Group Plc, will start towards the end of next month.

At John Lewis Partnership, Lewis was responsible for leading a program to improve the supply chain, while gaining valuable e-commerce insights as a non-executive director at Ocado Group PLC (LSE: OCDO).

Lewis is to succeed Adrian Evans and help lead Made.com’s next phase of growth and development, the company said in a statement.

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