Online furniture retailer Made.com has seen shares plunge after warning it is set to slump to a full-year underlying loss due to tumbling sales and supply chain woes.
The group’s shares slumped by more than a fifth at one stage as it slashed its sales outlook and said trading would remain “highly challenging” this year.
Made.com – which floated on the stock market last June – forecast full-year gross sales would fall by up to 15%, while ongoing supply chain disruption is also hitting its bottom line.
It said it expects to post an annual underlying loss of between £15 million and £35 million, dragged lower also by a £5 million cost of supply chain issues.
The firm had in March forecast underlying earnings of up to £15 million.
Made.com said: “Although Made’s performance has remained strong versus pre-pandemic levels, trading has been volatile in recent months and more challenging than anticipated at the start of the year.”
“We now assume the market will remain highly challenging for the rest of 2022,” it added.
The group saw gross sales tumble 10% in its first quarter, though it said this was better than the wider online furniture market, which it said was down by between 30% to 40%.
It also postponed its target to notch up £1.2 billion of gross annual sales, saying this would now be achieved later than the original 2025 goal.
Nicola Thompson, chief executive of Made.com, 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.”
The group also announced that financial director Adrian Evans will leave the group on June 27, to be replaced by former John Lewis Partnership chief financial officer Patrick Lewis.