Made warns losses could double

Made has warned shareholders that losses could be double that what it had forecast just two months ago.

The etailer says that it expects adjusted EBITDA losses to be between £50m-£70m for 2022, up from May’s forecast of £15m-£35m.

Sales in the first half have dropped by 19%. In May it forecast that sales would be flat at best and be down 15% at worst. In March it was predicting growth of 25%-35%.

It said it had overstocked and selling off the excess had hit profits. It also warned that jobs could go as it looked to save £10m-£15m a year. ‘Areas of focus include looking at forward stock buying, warehousing and sourcing markets, and reviewing our operational structure and headcount,’ it says. It had previously told shareholders that reducing lead times by holding stock increased sales.

‘It’s clear that things are 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. As such it’s prudent for us to take a conservative view of what we can expect in the second half of this year,’ says Nicola Thompson, Made ceo.

‘To enable us to continue executing on our strategy we’re taking steps to address the non-strategic costs in the business, as well as considering options to allow us to strengthen the balance sheet sufficiently to navigate what will undoubtedly continue to be challenging conditions. We’re confident that this will put us in a strong position for the coming years.’

Made22

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