Temple & Webster profit falls, but business remains optimistic

Rakshnna Pattabiraman

14th Feb 2023

Pureplay online furniture and homeware retailer Temple & Webster’s profits slump in its December half as consumers return to in-store shopping.

For the six months to December 31, sales fell 12 per cent to 207 million while EBITDA was recorded at $7.3 million. Tax-paid profits fell 46.7 per cent to $3.9 million.

The company said the contribution of its private label collection to sales increased to 28 per cent in the half.

The trade & commercial and home improvement categories grew by 17 per cent and 12 per cent respectively. The company also subsequently reduced its investment (about 40 per cent) in its home improvement startup, The Built.

Visits by repeat customers have grown 57 per cent and the company has recorded a 7 per cent increase in revenue per active customer.

Temple & Webster CEO, Mark Coulter, said he is “pleased” with the progress the business made during the half.

“We benefited from our focus on margin optimisation and cost management, despite revenue being down year-on-year, which highlights the flexibility of the business model.

“While we dialled back spending in the half, we continued investing in our digital capabilities, product range and target verticals.”

He added e-commerce in the Australian furniture & homewares category remains highly “under-penetrated” and the business has a much larger “addressable market” to go after.