British online furniture seller Made achieved to raise its turnover by 50 % last year and gained market share as well. In order to grow further, the focus shifts to more external brands and faster deliveries.
Losses grow quickly
Turnover amounted to 372 million British pounds (450 million euros), thanks to 25 % more active customers (1.3 million active users), 44 % repeat purchases and an 8 % growth in average order value. New CO Nicola Thompson attributes the excellent results to the unparalleled understanding the company has of its customer base, and says it is making progress on all important strategic domains.
What Thompson – previously an interim CEO, but now permanently appointed to the role of CEO – chose not to mention, is that losses are increasing at the same time. The adjusted gross profit ended in a loss of 14.3 million British pounds (17 million euros), more than double the loss of a year earlier. Pre-tax losses were more than twice as large as in 2020 and amounted to 31.4 million pounds (38 million euros). Made last year’s IPO caused costs of 6.4 million euros, while increased freight costs and supply chain disruptions resulted in additional costs in the last quarter.
For the future, Made wants to focus on a wider product range, which is why the company is testing a “curated marketplace” that also includes third-party brands. In this way, the e-tailer wants to increase the offer this year from 9,500 to 11,500 SKUs. Logistical investments in warehouse capacity will also follow this year, so that the average lead time in the first half of the year can fall to 3 to 4 weeks.
Such investments will become even more important, as 2022 started with weak demand. Made therefore assumes a 25 to 35 % growth in turnover for the entire year, mainly due to a better second semester. The gross profit would end positive, between five and fifteen million pounds.