Online retailer stock gets dumped as sales growth slows
Disappointed investors sent Temple & Webster shares to a seven-month low after the high-profile online furniture and homewares retailer announced lower-than-expected sales.
Chief executive Mark Coulter told the company’s annual general meeting on Wednesday that revenue rose 18 per cent in the period between July 1 and November 20.
But RBC Capital Markets analyst Wei-Weng Chen said the consensus expectation is for 23 percent growth in the first half of this fiscal year.
The 18 percent growth represents a sharp slowdown from the 28 percent growth Temple & Webster reported in August, Mr. Chen said.
With December typically being a quieter month for the company, RBC sees potential risk for a further slowdown in the rest of tomorrow.
TPW shares fell 28.4 percent to $14.63 around 11 a.m., their lowest level since early April.
Temple & Webster has made significant market share gains, key leading indicators are moving in a positive direction and the proportion of orders from repeat customers continues to increase, Mr. Coulter said.
Mr Coulter said Temple & Webster began shipping to New Zealand in October and the launch was off to a great start, with revenue topping six figures and total orders exceeding expectations.
He said the company had generated revenues of $601 million in 2024/25, a 21 percent annual increase, and was on track to reach its medium-term target of $1 billion annually.
The company has a cash position of over $150 million and no debt.
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