Temple & Webster chief executive Mark Coulter has doubled down on the online retailer’s aggressive growth strategy after a brutal market sell-off wiped about $1.4 billion from the company’s valuation in four months.

Shares in the ASX-listed furniture and homewares group plunged more than 25% on Thursday following its half-year results, extending losses that have seen the stock fall roughly 40% since the start of 2026.

The shares were trading above $20 in late November but slumped to around $8.40 after the latest update.

The sharp reaction came despite a 20% lift in revenue to $376 million for the six months to December. Active customers rose 14% to 1.35 million, while repeat customers accounted for 62% of orders. However, net profit fell 36% to $5.76 million as heavy promotional activity and discounting weighed on margins.

Temple & Webster

Delivered margin slipped to 30.5%, and EBITDA came in at $13.5 million, within the company’s 3 to 5% margin guidance.

Investors appeared unsettled by the weaker profitability and management’s clear signal that growth, not near-term earnings, remains the priority.

“We’re not managing the business for profitability at this point in the cycle,” Coulter (pictured) said, arguing the company is pursuing a “once-in-a-generation” opportunity to cement its position as a digital leader in a sector still dominated by bricks-and-mortar giants such as Ikea and Harvey Norman.

Temple & Webster’s market share has climbed to 2.9%, up from just over 1% six years ago.

Coulter said the company would continue to lean into promotions to capture share, even as competition intensifies from online players such as Koala, which is reportedly eyeing a potential ASX listing.

The group ended the half with $161 million in cash and no debt and reaffirmed its target of reaching $1 billion in annual sales by FY28.