Temple & Webster Aims For $1Bn Annual Revenue
Online homewares and furnishings retailer Temple & Webster has reported a 21 per cent increase in revenue from July 1 to October 24, and says that it is on track to achieve its $1 billion in annual revenue target within 3-5 years from the FY2023 base year.
At its AGM on Monday, the retailer said that around 60 per cent orders now from repeat customers, demonstrating strong brand loyalty.
It reconfirmed its forecast EBITDA margin guidance for the full year of 2025 of 1 per cent to 3 per cent.
The company noted that it had more than $100 million in cash and no debt.
It had previously posted revenue of $498 million for fiscal 2024, an increase of 26 per cent, but its profits tanked by nearly 79 per cent to $1.8 million as it invested in growing the business.
It also recorded a $4.7 million writedown in its investment in an Israeli AI company, with Temple & Webster building its own in-house AI and tech team.
It now expects November and Black Friday sale period to keep increasing in importance in the retail calendar, especially for the online shopping sector.
It noted that margin levels continue to track in line with its target range, although there are some increases in international freight rates.
The company says that its share of the total furniture and homewares category, which includes both online and offline, reached 2.3 per cent in FY24, up 31 per cent year-on-year.
“We are still very early in the online adoption cycle, especially in our category. Even at 20 per cent online penetration, which is the latest Euromonitor estimate for furniture and homewares in Australia, we still lag other markets such as the US and UK, which are already approaching 30 per cent,” said Stephen Heath, chair of the board, while addressing the AGM.
“We expect Australia to catch up to online penetration rates seen in other markets such as the US and UK over the coming years, driven by demographic trends independent of macroeconomic factors. Millennials are overtaking Baby Boomers as the largest population segment, and these digital natives are entering their core furniture and homewares-buying years as we speak.”