Strong Q4 contributes to Temple & Webster turnaround
Online furniture retailer Temple & Webster narrowed its losses and grew revenues in Q4 FY17 on its path back to profitability, the company reported today.
In a guidance update to the market, Temple & Webster forecast its FY17 revenue to be $63.5 million ‐ $64.5 million, up around four per cent year-on-year on a pro forma basis and around 10 per cent increase on a continuing business basis, excluding the Milan Direct UK operations, which the company exited early in FY17.
FY17 EBITDA is forecast to be a loss of $6.8 million ‐ $7.3 million, an improvement of over 50 per cent year-on-year.
Temple & Webster boss Mark Coulter said Q4 FY17 will be the company’s strongest quarter in its turnaround journey.
“We have reduced our Q4 EBITDA loss to [approximately] $0.5m, a significant improvement from a loss of $3.1 million in the prior year corresponding period. We again grew revenues while improving our margins and cost base, and continue to make great progress on all our key metrics.”
“These improvements have lowered the revenue run‐rate required to reach profitability to [approximately] $79 million on Q4 metrics.”
Given Temple & Webster’s full-year revenue guidance is $63.5 million ‐ $64.5 million and its current growth rate, Coulter said he is “confident of reaching profitability during CY18,” with FY19 being the first full-year of profit.
The homewares and furniture company is forecasting a cash balance of $8 million ‐ $8.5 million and zero debt at June 30, as well as a significant reduction in its EBITDA loss per quarter.
Coulter said this provides the company with enough reserves to meet its current plans.
“With over 130,000 products for sale, Temple & Webster has the largest range of any retailer in our category in Australia. We have combined this massive range with the most inspirational content and
world‐class service.
“Our relentless focus to deliver beautiful solutions for our customers’ homes and
work spaces is the reason we are the number one online retailer in our category by quite a long
way,” Coulter said.
The company has recently made its first foray into physical retail, turning its existing Milan Direct showroom in Melbourne into an outlet for Temple & Webster seconds and excess stock.
In February, Coulter also suggested the company is looking to open a flagship store in Sydney in 2018.
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