Temple & Webster has suffered a brutal sell-off, with shares crashing almost 30% after a sharp slowdown in revenue growth for the online homewares retailer.

The company reported an 18% lift in revenue between 1 July and 20 November compared to the prior period – well below the 23% growth analysts had expected and a steep deceleration from the 28% surge seen earlier in the quarter.

The update sent the stock plunging from around $20 to the mid-$14 range in early trade, wiping hundreds of millions from its market value.

RBC Capital Markets analyst Wei-Weng Chen said the weaker-than-forecast result raised the risk of further softness.

“December is typically a quieter month, and with Black Friday and Cyber Monday still to cycle, we see potential for additional deceleration over the remainder of the half,” Chen said.

Citi analysts were also caught off-guard, noting the slowdown was “surprising” given strong recent updates from furniture peers and Temple & Webster’s expansion into New Zealand and Western Australia.

T&W CEO Mark Coulter

Despite the market backlash, the company reaffirmed guidance for an EBITDA margin of 3% to 5% and reiterated its trajectory toward $1 billion in annual revenue.

T&W CEO Mark Coulter told investors the business continues to gain market share, with active customers at record levels, average order values up 3% and repeat purchase rates improving.

Segments including home improvement (up more than 40% year-on-year) and trade & commercial (up 23%) remain bright spots.

Temple & Webster also confirmed it has more than $150 million in cash and an on-market share buyback ready to activate.

But the sell-off highlights mounting investor sensitivity around valuation and profitability.

The stock surged more than 250% earlier this year, earning growth-stock status despite modest earnings and a market capitalisation previously above $3 billion.