Temple & Webster shares lower despite revenue lift
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More news: Shares in Temple & Webster have slipped 1% to $17.05 in early trading despite the online furniture retailer reporting strong sales growth so far in the second half. It also noted that the US-China tariff war has been a positive for its business.
RBC Capital Markets analysts said the latest trading update has accelerated from the company's February announcement but revenue growth remains below consensus expectations.
What they said:"Overall, near term this update is possibly a slight downgrade, but the FY26 outlook looks to have improved," they said in a note.
Temple & Webster lifts revenue, sees positive impact from US tariffs
The news: Online furniture retailer Temple & Webster has reported strong sales growth so far in the second half and says the US-China tariff war has been a positive for its business.
The numbers: The company said second half revenue to 5 May is up 18% from a year ago, with revenue since 1 March jumping 23%. It now expects full-year earnings margins to be towards the top end of the guidance range.
The context: The retailer said growth has been led by the home improvement and hardware category, which has recorded revenue growth of 42% for the second half to date. CEO Mark Coulter said Temple & Webster has bucked the trend to grow strongly and take market share despite ongoing cost-of-living pressures, Cyclone Alfred, the federal election and broader global uncertainty.
He said the US-China tariff war had been a net positive for the business, most directly felt through lower inbound shipping rates of around 20%. “If these deflationary effects continue, combined with some of the macro tailwinds we are seeing (such as reducing interest rates and stimulatory Australian government policies around housing), we should see market conditions improve further,” Coulter said.
The source: ASX
