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Online shopping, home-sprucing boom not abating for retailer planning to become Australia’s biggest

Rebecca Le MayNCA NewsWire
Temple & Webster’s sales keep surging. Supplied via NCA NewsWire
Camera IconTemple & Webster’s sales keep surging. Supplied via NCA NewsWire Credit: Supplied

Furniture and homewares e-tailer Temple & Webster has booked a record full-year result, saying its growth goes beyond the pandemic-sparked online shopping and home sprucing boom.

Earnings before interest and tax for 2020-21 more than doubled – up a whopping 141 per cent.

The company said it was its best year yet for revenue, profit and shoppers, particularly trade and commercial customers, which more than doubled, soaring 110 per cent.

In the most recent June quarter, sales were up 26 per cent compared to the same period last year at the start of the Covid-19 online shopping spree, which in itself was up 130 per cent on the prior corresponding period.

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Temple & Webster has booked a record full year result as the online shopping boom continues for the e-tailer.
Camera IconTemple & Webster has booked a record full-year result as the online shopping boom continues for the e-tailer. Credit: NCA NewsWire

Chief executive Mark Coulter said the record result was driven by a strong uptick in new and repeat customers, and average order values.

“While lockdowns during FY20 and FY21 have accelerated the underlying shift from offline to online, pleasingly we continue to see strong growth even when comparing against Covid-impacted numbers,” Mr Coulter said.

Temple & Webster says its investment in marketing – including TV and new apps – has paid off, while it has poured more cash into an artificial intelligence interior design start-up, allowing shoppers to upload a photo of an item they like onto its website, which then provides search results of similar-looking items.

Temple and Webster chief executive Mark Coulter says the company is booking ‘strong growth even when comparing against Covid-impacted numbers’.
Camera IconTemple and Webster chief executive Mark Coulter says the company is booking ‘strong growth even when comparing against Covid-impacted numbers’. Credit: Supplied

This financial year is off to a strong start, with revenue up almost 40 per cent for the first 24 days of this month.

The growth continues to be driven by consumers having more cash because of travel restrictions and the booming housing market, while the adoption of online shopping is ongoing.

Temple & Webster says its ultimate goal is to become Australia’s biggest furniture and homewares retailer – both online and offline.

Investors were happy with the report, sending the company’s shares as high as $13.33 in early trade. They were up 9.56 per cent at $12.72 at about 1pm AEST.

Temple & Webster has booked a record full year result as the online shopping boom continues for the e-tailer.
Camera IconThe 2021-22 financial year is off to a strong start for Temple & Webster, with revenue up almost 40 per cent for the first 24 days of this month. Credit: NCA NewsWire

That’s beating RBC Capital Markets’ $12 price target.

RBC said it was a solid result across the metrics of the business, with June quarter revenue growth slightly ahead of its analysts’ numbers but below market expectations.

“July amidst the ongoing lockdowns appears to be run-rating ahead of our expectations,” RBC said.

“Temple & Webster’s private label appears to have contributed to the outperformance, while the rebounding trade and commercial sales also factored in.

“We think the first half of FY22 is off to a good start, allowing Temple & Webster to reinvest back into the operations of the business.”

Originally published as Online shopping, home-sprucing boom not abating for retailer planning to become Australia’s biggest

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