Temple & Webster shares tumble after guidance miss
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More news: Shares in Temple & Webster fell in afternoon trade despite the retailer delivering the “most profitable April in the company’s history” as analysts flagged worse-than-expected FY26 earnings guidance.
Shares dropped 5.45% to $5.03 at 1:12pm AEST.
RBC Capital Markets analyst Wei-Weng Chen maintains an “outperform” rating with a price target of $10, saying the company’s FY26 revenue guidance missed market consensus by 6%, while its EBITDA guidance missed by 30%.
Temple & Webster delivers ‘most profitable April’ after margin optimisation program
The news: Furniture retailer Temple & Webster said it delivered its “most profitable April in the company’s history” following the implementation of a new margin optimisation program, introduced in response to consumer confidence hitting “historic lows” since its half-year result in February.
The numbers: The company said it consequently expects to deliver FY26 revenue in the range of $665 million-$675 million, representing an 11%-12% increase compared to FY25. FY26 EBITDA is expected to be between $20 million-$22 million, up 6%-17% year on year.
Temple & Webster recorded EBITDA of $2.5 million last month, making it the most profitable April in the company’s history “by quite a long way”, it said.
The context: The group said as part of its new program is has implemented a new promotional cadence, repriced its entire catalogue, received more support from suppliers, restructured its marketing campaigns, and slowed its fixed cost growth.
What they said: “We remain firmly focused on growing our market share and reaching $1 billion in revenue by FY28, and becoming a larger, more profitable business,” said Temple & Webster CEO Mark Coulter.
“However right now, given the uncertainty in the Australian economy, we have prudently chosen to rebalance between profit and growth in our core business.”
The sources: ASX, RBC Capital analyst note
