Mounting losses are Made in hell
FIRMS’ SHARES DIVE AS SHOPPERS CUT BACK
SHARES in online furniture firm Made.com plunged yesterday after it delivered a cost of living crisistriggered profit warning.
Bosses are looking at ways to cut costs, including the potential for job losses.
It came as upmarket sweet treat maker Hotel Chocolat said it was scaling back growth abroad – and shutting its US shops – because of the economic slowdown.
Hotel Chocolat’s share price nearly halved yesterday after the firm warned it was set to post an annual loss.
The two companies join a growing list suffering from households reining in spending.
Nicola Thompson, Made.com’s chief executive, said: “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.”
Made.com’s sales in the first half of 2022 dived 19 per cent year on year, but were higher than before the Covid pandemic struck. It was forced to rip up previous forecasts because of shoppers cutting back, plus a £20million blow from supply chain costs and discounting. Annual sales – which it said in May could be flat to minus 15 per cent – are now expected to fall as much as 30 per cent. And whereas it had been braced to make a loss of up to £35million, it could now be as much as £70million. The firm also revealed it could end the year with net cash of up to £35million, when it was expecting to have up to £65million. The update saw Made. com’s share price plunge 45 per cent by the end of trading.