Online retail giant AO has warned of "meaningful supply chain challenges" with "poor availability" of certain products in the run up to Christmas.
The Bolton-headquartered group added that there will be a particular problem with "newer products where we have less scale, experience and leverage".
In a statement issued to the London Stock Exchange, AO also said shipping costs, material input prices and consumer price inflation "remain challenging uncertainties".
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The group said that as a result it now expects its full-year revenue to be "flat to minus 5%" year on year, with its adjusted EBITDA to be between £10m and £20m.
The update comes as AO announced its results for the six months to the end of September 2021 in which its total group revenue increased from £717m to £760m.
UK revenue increased from £616m to £661m while its sales in Germany dipped slightly from £112m to £115m.
However, the group fell to a pre-tax loss of £10m, compared to a profit of £18m during the same period in 2020.
Its group adjusted EBITDA also slumped from £28m to £5m.
Following the publication of the half-year figures, AO's shares slumped by more than 25% in early trading.
Founder and chief executive John Roberts said: "Our results over this period have inevitably been affected by the constraints and uncertainty seen across our industry.
"We've materially cemented the progress of last year, with a step change in scale and consumer behaviour - and the fundamentals of the business are in place for sustained growth.
"We're seeing more customers making repeat purchases more frequently across categories.
"Once they experience the AO Way, they keep coming back. Our outstanding operational capabilities are also being recognised by more and more companies who are now outsourcing their delivery services to us.
"We're working hard to solve some of the current challenges that our industry is facing.
"We've recruited c.500 new drivers and are working closely with our manufacturer partners so that customers can get what they need.
"Our AOers continue to deliver brilliantly, and our consistently world-class Net Promoter Scores and Trustpilot ratings are evidence of that. I'd like to take this opportunity to thank them for their amazing work, and I'd also like to thank our manufacturers for their ongoing support despite facing their own challenges during the period.
"While the short-term challenges are clear, I remain hugely optimistic about AO's long-term growth prospects."
