Temple & Webster Profits Climb as Online Growth Continues

Power Retail By Power Retail | 27 Jul 2021

Online retailer, Temple & Webster, is reporting a ‘record year’ for revenue, customers and profit in its full-year results. The growth is underpinned by the increase in repeat customers and the ongoing development of e-commerce.

Mark Coulter, the CEO of Temple & Webster explained that “once again, Temple & Webster has delivered a record result.” The retailer is reporting a revenue increase of 85 percent to $326.3 million, with the first half year’s revenue of $161.6 million, followed by $164.7 million in the second half. Additionally, its EBITDA is up 141 percent to $20.5 million YoY.

“While lockdowns during FY20 and FY21 have accelerated the underlying shift from offline to online, pleasingly we continue to see strong growth even when comparing against COVID impacted numbers,” Coulter explained.

Its revenue per active customer has increased by 12 percent, driven primarily by repeat purchases and the ongoing adoption of online shopping. Temple & Webster has additionally maintained a profitable, capital-light and debt-free balance sheet, ending with a cash balance of $97.5 million.

Temple & Webster’s active customer base grew 62 percent YoY, currently sitting at 778,000. Its iOS and Android apps, which were released in FY21 have received ~4,000 reviews with an average rating of 4.8 stars out of five. This App is said to lead to further repeat purchasing and a higher engagement. While its NPS slipped in November – due to a post-November peak – it has since returned to 65 percent+, the company explained.

“While the start of FY22 has been difficult for many Australians, we remain focused on delivering a great experience for our customers, built around the biggest and best range of furniture and homewares, combined with inspirational content and services and a great delivery experience and customer service,” Coulter shared.

Temple & Webster also shared a reported increase in its Trade & Commercial division – revenue has grown by 110 percent YoY. FY22 has begun ‘strongly’ with revenue growth of 39 percent YoY. The retailer will further invest in its AI capabilities, by working in partnership with the Israel-based Artificial Intelligence Interior Design service startup.

Following these results, its share price has surged seven percent to $12.43. Stay up to date with the leading ASX-listed online retailers with the weekly edition of THE YIELD.

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