Purple Brix shares (LON:PURP) plunged more than 30% on Thursday after the company cut its sales forecast for this year.
The online real estate agent said its expected revenue for the coming year is “not sufficient to meet expectations.”
Purplebricks said sales would increase by 15-20% year-on-year, but the company warned of difficult trading conditions in the UK housing sector and revised its forecast downward as a result.
In its announcement, the company also cited Australia’s “headwinds” as an additional challenge.
Additionally, Purplebricks announced the retirement of two prominent executives. UK CEO Lee Wainwright and US CEO Eric Eckardt are both planning to leave the company.
Mr. Wainwright is leaving the company for “personal reasons,” but the company did not disclose the reason for Mr. Eckerd’s departure.
CEO and co-founder Michael Bruce said: “While there are macro and industry headwinds across the market, although not as much as we would have liked prior to this year, we are well-positioned to take advantage of the significant growth opportunities that exist in each country.” The UK is leading the way with a strategy that will deliver continued profitable growth and greater success. I’m also excited to take the reins of the US business. The Australian team is building on the changes they made late last year, and Canada is living up to their plans and expectations. The Board remains confident in the long-term growth potential of the business and the opportunity to deliver significant value to shareholders. ”
The stock is down -28.24% as of 10:54 a.m. GMT.
