The business said it had found itself at a need to sell goods at a heavy discount
(Picture: Made.com/PA)Shares in Made.com soared 24% on Thursday after the furniture retailer posted a surprise uptick in revenue for the first half of the year despite warning of dwindling demand amid a severe downturn in the home furnishings market.
The firm reported revenues of £178 million in the first six months of 2022, up 4.2% on the previous year. The value of orders shrunk 18.8%, while pre-tax losses swelled £35 million.
It comes after the firm slashed jobs and announced it was putting itself up for sale as part of a strategy to keep the business afloat and protect shareholder value.
The business said it had found itself at a need to sell goodsat a heavy discount in order to address the inventory levels to adjust to “adverse market conditions”, but had also found itself in an “overstocked” position on inventory due to the downturn in consumer spending.
Shares in the group have dived nearly 95% in value over the past year with the group instructing consultants at PwC to explore a restructuring of the group and to implement potential cost-cutting - including redundancies.
Nicola Thompson, Chief Executive Officer, said: "The first half of the year was a challenging time for the global economy and particularly for the retail sector. The Group has faced a significant reduction in demand which has been difficult for the business and its stakeholders.
“MADE is not alone in being hit by supply chain problems and the cost of living squeeze, but we are confident that MADE has a strong brand, an excellent product range and a large and loyal customer base across the UK and Europe."
