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Temple & Webster Revenue Increases 74% YoY Despite ‘Very Tough Retail Conditions’
Temple & Webster has reported a revenue increase of 74 percent in its FY20 results held this morning.
The e-tailer has experienced growth across its B2C platform, despite the tough pandemic conditions.
“I am pleased to report a great set of numbers in the face of some very tough retail conditions,” said Mark Coulter, the CEO and Founder of Temple & Webster.
The retailer’s full-year revenue of $176.3 million is up 74 percent YoY, with H2 revenue up 96 percent vs the previous corresponding period (PCP). Furthermore, Q4 revenue is up 130 percent vs PCP.
The pandemic-related acceleration of online shopping has helped inflate the revenue for Temple & Webster, but Mark Taylor, the retailer’s CFO, explained that its numbers were tracking well prior to COVID-19. “The business was growing very fast, pre-COVID,” Taylor said.
The homewares retailer explained that Millennials are entering its ‘core demographic’, as they spend more time at home and invest in their spaces.
“Our market should grow even in tough macroeconomic conditions which Australia may be facing,” said Coulter.
While Coulter said it’s ‘impossible to predict the future’, he stated that with good shopping experiences come permanent changes in shopping behaviour. “If that plays out, there will be a permanent adoption of online shopping,” he explained.
Temple & Webster’s active customer base has increased by 77 percent YoY, with repeat and first-time customers experiencing growth on both levels. Furthermore, Coulter told Power Retail that the company had been able to increase its conversation rate alongside the growth of its customer base.
While rapid growth is positive for Temple & Webster, Coulter explained that the business ‘could’ve grown faster’. “We chose to priorities customer experience rather than short term growth,” he said.
In the FY20 report, Temple & Webster shared a 136 percent growth market share, compared to the NAB Online Sales Index, which projected a 49 percent growth within the Homewares and Appliances categories.
“We continue to feel the benefits of being the market leader,” Coulter said. “We forge close relationships with our suppliers; we’re making bigger and bigger investments in data and increasing private label content. This allows us to grow at a virtuous cycle – faster than the market.”
“As consumer preferences change, we’re ensuring that the brand moves faster than our peers,” Taylor added.
The core focus for H2 was scaling the business while keeping a high level of customer satisfaction. Temple & Webster raised $40 million to strengthen its balance sheet and provided capital for ‘strategic investments’.
For its B2B platform, Temple & Webster experienced a “great year, despite a pretty tough Q4”, Coulter said. Its trade and commercial grew revenue by 68 percent YoY.
“I want to thank the Temple & Webster team for a huge year,” Coulter finished. “They’ve worked incredibly hard to ensure that we can keep servicing Australian customers during these really challenging times. We’re doing our bit to make sure Australian homes are set up during these really hard times.”
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