Made.com Group PLC (LSE:MADE) said volatile trading and worsening consumer confidence will impact profits this year.
Profitability is expected to be hit by roughly £20mln due to escalating supply chain costs and additional promotional and clearance activity.
Guidance was also revised for a number of metrics, including adjusted underlying earnings, which was cut to somewhere between a loss of £50mln and £70mln loss from a previous range of a £15mln loss to £35mln loss.
The lifestyle brand said gross sales in the first half sales were down 19% compared to the same period last year, with macro conditions making new customer acquisitions difficult as well as hitting demand for discretionary big-ticket items.
According to its statement, however, those issues should “substantially normalise” in the following six months as a result of reductions in inventory levels.
“Understandably, we've seen a worsening in consumer confidence since May and this has had an impact on this period's performance." said chief executive Nicola Thompson.
"As such it's prudent for us to take a conservative view of what we can expect in the second half of this year.”
Made.com's share price nosedived 38% in morning trading, changing hands at 23.6p.