It looks really bad for Purplebricks right now The discount brokerage is struggling with housing slowdowns
Purplebricks CEO Eric Eckardt (Credit: iStock)
All is not well for rapidly expanding discount brokerage Purplebricks. The company s shares fell the most on record after the brokerage lowered its outlook for the second time since early December.
The company slashed sales guidance for the year by 20 percent — as it expands in the U.S. and Aust上海龙凤论坛 ralia, where the housing markets have slowed. Its chief executives in the U.S. and U.K. are also leaving the firm, Bloomberg reported.
Shares fell as much as 39.4 percent, the most since Purplebricks started trading in December 2015. The drop in investor sentiment comes as Purplebricks is facing headwinds across its ma上海同城对对碰交友社区 rkets. In the U.S., its marketing push hasn’t yielded expected sales, while Brexit negotiations in the U.K. have decreased home sales.
The company expects to bring in revenue of 130 million pounds to 140 million pounds this year, or $170 million to $183 million. That’s down from an initial estimate of as much as 185 million pounds, or $242 million.
“Given the tough trading backdrop in its key regions and the recent changes to customer propositions in the U.S. and Australia, revenue visibility is low and the near term growth outlook has weakened,” Peel Hunt analysts wrote in a note.
Last month, the discount brokerage said it would take a more traditional approach in the U.S. The company is changing i[……]