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Temple & Webster’s profits slide, but retailer bullish about this year

Pureplay furniture and homeware retailer Temple & Webster says the business is “back to growth” driven by both repeat and first-time customers.

In the release of its full-year results on June 30, the company’s sales reached $396 million with an EBITDA of $14.8 million and a tax-paid profit of $8.3 million – down from $12 million in FY22.

Orders from repeat customers accounted for 54 per cent of total orders while revenue per active customer grew 6 per cent for the year.

The company’s app has registered 536,000 downloads across iOS and Android while AI-enhanced product descriptions have led to higher conversion rates and revenue per visit.

The company’s B2B trade & commercial division grew 9 per cent year-on-year and represented 10 per cent of the group.

Temple & Webster CEO, Mark Coulter, said: “Our FY23 performance demonstrates the resilience and flexibility of our business model and it’s great to see that we’re now firmly back in growth mode.

“In this environment, shoppers are searching for quality items at affordable prices as cost-of-living pressures impact household budgets and it’s clear our agile range is resonating with consumers.”

The fourth quarter generated “positive momentum” for the retailer, while current year-to-date business revenue – to August 13 – shows a 16 per cent improvement year on year.

“We have a strong start to FY24. While the near-term macroeconomic climate will continue to put pressure on the sector, our business model, product offering, strong customer metrics and AI abilities give us the confidence to aggressively go after market share in the near term and deliver substantial long-term benefits,” said Coulter.

He added the company’s $30 million on-market buyback will continue to improve shareholder returns in the absence of more accretive opportunities.

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