FY22 Sales Forecast Down by 15% to 30%, EBITDA at -£50m to -£70m
- Made.com issues FY profit warning due to volatile trading and worsening consumer confidence
- FY22 sales expected to be down by -15% to -30%, previously 0% to 15%
- Full year EBITDA now forecast at -£50m to -£70m, down from -£15m to -£35m
- Non-recurring costs and supply chain disruptions impacting profitability
- Focus on addressing non-strategic fixed costs in the business
Made.com has issued a profit warning for FY22 due to volatile trading and worsening consumer confidence, impacting demand for big-ticket purchases. The retailer now expects FY22 sales to be down by 15% to 30%, down from a previous guidance of 0% to 15%. Full year EBITDA is expected to be -£50m to -£70m, down from -£15m to -£35m. The group attributes this update to non-recurring costs, volatile trading, and ongoing expectation for no near-term improvement in discretionary big-ticket demand or new customer acquisition. Made.com is addressing non-strategic fixed costs across the business, focusing on forward stock buying, warehousing, sourcing markets, and operational structure to better position itself for future challenges. CEO Nicola Thompson remains confident in the company’s ability to navigate the difficult conditions.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Made.com’s profit warning, the reasons behind it (worsening consumer confidence, impact on new customer acquisition, and updated guidance), and the company’s plans to address non-strategic costs and strengthen its balance sheet. It also includes a quote from the CEO that supports the information presented.
Noise Level: 3
Noise Justification: The article provides relevant information about Made.com’s profit warning and updates on its guidance due to worsening consumer confidence impacting demand and sales. It also mentions the CEO’s response to the situation and plans for addressing non-strategic costs. The article stays on topic and supports its claims with specific numbers and percentages.
Financial Relevance: Yes
Financial Markets Impacted: Made.com’s stock price and other home furnishing retailers
Financial Rating Justification: The article discusses Made.com’s profit warning, updated guidance, and impact on its EBITDA, as well as the company’s plans to address non-strategic costs and strengthen its balance sheet. This directly relates to financial performance and market conditions for the company and potentially similar businesses.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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