By Joe Hoppe
CMO Group said it expects earnings to miss guidance, following lower than normal average order values in the latter half of the year.
The London-listed online retailer said Monday that it expects 2023 adjusted earnings before interest, taxes, depreciation and amortization to be around 1 million pounds ($1.3 million), below prior guidance in August of around GBP2.5 million and 2022’s GBP2.1 million.
The company said economic challenges have significantly hit the construction sector and particularly discretionary spend in the repair, maintenance and improvement sector. While it said demand remains resilient, consumers have shifted towards smaller projects, driving lower order values in late 2023.
Total sales are expected to be broadly in line with prior expectations at around GBP71.5 million, down from GBP83.1 million.
Despite the disappointing last quarter, the company said it successfully delivered on several key strategic priorities, including product margin improvement and carriage cost control.
“With macroeconomic headwinds continuing to impact the construction sector we proceed with caution for the outlook for 2024, but remain confident in our model and strategy to take the business forward, and our ability to deliver profitable progress,” Chief Executive Dean Murray said.
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