Online sales of retailers are crashing with major direct sell brands such as Samsung, Sony, and Dyson along with retailers such as JB Hi Fi and The Good Guys reporting large falls in traffic as consumers go back to shopping in stores.
Yesterday JB Hi Fi reported a 20% fall in online sales, while earlier today home furniture group Temple & Webster Group posted a 7.2% fall in full-year sales which declined to $609.5 million.
Discounting drove profits down 30% per cent to $12.79M.
Profit before tax for the year was 9.7 per cent lower to $18.49M, with the reported figure affected by tax adjustments in financial 2022, when the company benefited from customers upgrading their bedrooms and home offices.
The business claimed that trading had improved over the second half of 2023. The company moved back to growth in the fourth quarter and continued the trend into the new year, with revenue up 16 per cent to August 13.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the year was $US14.8 million, up 3.7 per cent and within guidance range of between 3 per cent and 5 per cent. EBITDA for the second half was 80 per cent higher when compared to the previous period due to improving delivered margins and better cost management.
Temple & Webster chief executive Mark Coulter said the company had a strong start to the new year. There were no dividends paid.
