Temple & Webster Sales, Shares Surge Despite ‘Significant’ Headwinds

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By Published On: August 16, 20220 Comments

Temple & Webster has exceeded expectations with its revenue for FY22, with its shares soaring despite consumer shifts in discretionary spending.

The online retailer reported a 31 percent YoY increase in revenue, $426.3 million for FY22. This is a 142 percent increase on a two-year basis.

The CEO of Temple & Webster, Mark Coulter, said that ‘despite some significant domestic and global challenges’, T&W has ‘bucked the trend’ with its figures for the FY.

Moreover, its EBITDA margin is 3.8 percent, falling at the higher end of its guidance of two to four percent. This includes a $1.7 million investment in The Build – a home improvement site dedicated to renovations.

“Due to careful margin and cost base management, we were able to drive an EBITDA margin result at the top end of our two-four percent guidance, even in these challenging retail conditions, and after our investment into The Build,” said Coulter.

While discretionary spending is dropping in the home and garden industry in favour of travel, there was a 21 percent increase in T&W’s active customer base, which is now at 940,000. Revenue per active customer also grew, six percent above the previous year.

However, its NPAT is down 31 percent compared to last year, now at $13.2 million.

“We believe our flexible business model, our proposition around a great quality range at affordable prices, and our commitment to customer satisfaction and happiness will resonate even more strongly with customers during these tougher times,” Coulter explained.

The company advised that due to cyclical headwinds, the business plans to accelerate some of its margin optimisations and cost management systems. T&W will upgrade its EBITDA margin percentage guidance from two to four percent to three to five percent. No dividends have been paid during this financial period.

“We’re confident we have the people, platforms, brand and business model to achieve our goal of becoming Australia’s largest retailer of furniture and homewares,” shared Coulter.

Temple & Webster’s share price has seen a 21.7 percent increase since opening this morning, now at $5.35 per share. On a five-day basis, there have been gains of 14.66 percent. However, over the last six months, its shares have shed 35.2 percent.

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