Yahoo Finance Made.com sees sales jump despite hit from supply chain troubles
Online furniture retailer Made.com has hailed a 38% jump in sales despite supply chain woes and said delivery delays were easing as factories and shipping get back on track.
The firm saw full-year sales lift to £434 million, with 25% growth year-on-year over the second half even though a fifth of its key furniture ranges were unavailable during peak autumn trading.
It had warned last month that sales figures would be cut by up to £45 million in 2021 due to extended factory closures in Vietnam and shipping delays.
The group said its earnings would be between £12 million and £15 million lower than previous forecasts as a result.
By the end of the first half, we expect average lead times to be significantly below pre-lockdown levels
Philippe Chainieux, Made.com chief executive
But in its latest update, Made.com said supply was improving, with all key overseas factories now open and shipping problems resolving.
This is set to see the customer delivery lead times fall “significantly” below pre-lockdown levels by the end of its first half.
It said it was on track to reduce deliveries to three to four weeks on average over the next six months.
Philippe Chainieux, chief executive of Made, said “self-help measures” taken last year were now paying off, as it built up solid stock positions to help slash delivery times.
“By the end of the first half, we expect average lead times to be significantly below pre-lockdown levels and, with the acceleration of the homeware product range, the company is well positioned to deliver its strategic initiatives in 2022,” he added.
The group thanked a 26% jump in customer numbers to 1.3 million for the solid growth rate seen in 2021.
It said it was also expanding its homewares marketplace this year beyond the testing phase due to the success of the trial so far.
Analysts at Liberum said: “This sets the group up well for both continuing growth in 2022 and the next strategic step to increase brand awareness in continental Europe.”
