// Made.com downgrades 2022 guidance amid a highly challenging market
// The retailer also welcomes John Lewis board member Patrick Lewis aboard as Chief Financial Officer
Made.com has lowered its expectations for the rest of 2022, with both gross sales and revenue expected to drop 15% and 7% respectively.
The London-listed online homeware and furniture retailer’s projected figures differ from the initial zero per cent and eight per cent expected in sales and revenue this year as it experiences a worse-than-expected performance.
Made.com said that while its performance has remained strong versus pre-pandemic levels, the market will remain highly challenging for the rest of 2022.
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“We remain very confident that Made will continue to outperform the online home and furniture market by at least 20 percentage points,” it added.
Third-party data has suggested that the online furniture and home market is down around 30-40% so far this year.
The company said it still expects 2022 exit rate gross margin to be around pre-pandemic levels and business shape will be set for the new operating environment.
The furniture seller expects adjusted EBITDA to hit £-35m and year-end net cash within the region of £40-45m.
Commenting on the outlook, CEO 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.
“MADE continues to outperform the online furniture and home market and I am confident the company will emerge in a very strong position.”
The retailer also took the opportunity to announce that former John Lewis board member Patrick Lewis would be joining the business as a Chief Financial Officer, replacing Adrian Evans from next month.
Lewis has spent much of his career in leadership roles on the John Lewis Partnership Board, most recently as Chief Financial Officer.
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.”
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