Temple & Webster delivers strong profit over half year
Online furniture retailer Temple & Webster reported a net profit after tax of $3 million over the six months to 31 December 2018, compared to an $890,000 loss over the same period a year prior.
This was due to a deferred tax asset gain of approximately $2.2 million, which boosted the previously announced EBITDA of $900,000.
Temple & Webster chief financial officer Mark Tayler told IRN the result was largely borne out of the brand’s focus on its range.
“Having the biggest range in Australia is certainly a key [point of] differentiation for us, and we’ve got over 120,000 product listings on our website at any one point in time,” Tayler said.
“We also pride ourselves around [having] the best deliver experience and customer service as well, ensuring when the product gets to the customer, it’s packaged the way we want it to be packaged, it’s delivered the way we want it to be delivered.”
The e-commerce business lifted revenue over the half-year by 40 per cent to $49.3 million, which chief executive Mark Coulter said has been helped by the difficult retail environment.
“The trend to online actually accelerated during a tougher retail environment, and I think we’re benefiting from that trend,” Coulter told IRN.
“Irrespective of any macro-economic trend, there’s still that shift toward online. Millennials are still growing up, and are still moving out of home and are buying their first or second property. That’s going to happen regardless of any downturn.”
This is another reason why ‘range’ is such an important factor for Temple & Webster – the ability to sell across multiple demographics.
“I think as much as we are a brand which suits an older customer, I think we’re very much a brand which is for a younger customer as well,” Coulter said.
“Having the biggest range means that you can do all your shopping for the home in one place relatively easily.”