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Temple & Webster Profits Surge by 90% During Lockdown
Temple & Webster has seen a surge in online sales during the pandemic. The online retailer reported revenue growing 90 percent vs PCP, which is driven by strong growth in April and May.
The growing demand for homewares, furniture and crockery has surged during the lockdown, with many customers updating their homes while in isolation.
In a trading update from ASX, the retailer reported that YTD revenue was up 68 percent to $151.7 million vs PCP.
Profits have also soared, with yearly EBITDA up 688 percent to $7.1 million, with strong figures from April and May continuing into June, with revenue tracking at +100 percent.
“As a team, we remain proud that we have played a small part in being able to help Australians set up their homes in a crisis,” said Mark Coulter, the CEO and Co-Founder of Temple & Webster.
“We can already see in our numbers that many of the customers who have never shopped with us before, and may be the first time online shoppers in our category, have already returned and made repeat purchases. These customers are experiencing the benefits of our channel, including range, convenience and value.”
As the lockdown measures took place, Temple & Webster reported an increase in active online customers, reaching 440,257 – this is an increase of 68 percent.
“We remain bullish about the longer-term shift from offline to online driven by changing customer preferences and demographics,” Coulter said. “Our strategy of being a category specialist, with a clear customer offering built around the largest range of furniture and homewares in the country, combines with the most inspirational content and the best customer service continues to resonate with our customers.”
The Group’s financial offering remains ‘strong’, the report explained. The Group’s profitability and cash flow remains positive and has a ‘capital light/negative working capital business model’.
Furthermore, Temple & Webster has taken the lockdown as an opportunity to shift from offline to online, resulting in an increasing demand for online shoppers.
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