Shares plunged more than 16 per cent for Made.com this afternoon after the lifestyle brand slashed its 2022 expectations, with both gross sales and revenue expected to drop 15 per cent and seven per cent respectively this coming year.
The projected figures differ from the initial zero per cent and eight per cent projected in sales and revenue for the firm and come alongside the “more challenging than anticipated at the start of the year”.
While MADE said its performance remained strong compared to pre-pandemic levels, trading remained volatile and third-party data has suggested that the online furniture and home market is down around 30-40 per cent so far in 2022.
MADE’s big ticket and luxury items feel excessive to households that are already feeling the pinch.
However, this made no difference to the London market.
“Investors don’t care that sofa seller Made.com is outperforming the market given the whole sector is experiencing a sharp decline in trading thanks to the cost-of-living crisis”, investment director at AJ Bell Russ Mould explained.
“As far as investors are concerned, Made.com’s earnings expectations have been sharply downgraded which means the stock is far less appealing to own, hence the big share price slump on the news.”
Commenting on the outlook, chief executive Nicola Thompson 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.”
“Our customers are at the heart of our business and 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.”
The London headquartered firm also took the opportunity to announce that former John Lewis board member Patrick Lewis would be joining MADE as a Chief Financial Officer.
He will be replacing Adrian Evans from next month and aid MADE’s growth and development.
Lewis has spent much of his career in leadership roles on the John Lewis Partnership Board, most recently as Chief Financial Officer.
As part of this role, he led a supply chain improvement programme and built strong relationships with key stakeholders in restructuring the John Lewis Partnership balance sheet.
Commenting on his appointment, Lewis said: “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.”