Temple & Webster plummets despite reiterating FY guidance
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The news: Temple & Webster shares plunged on the ASX despite the homewares and furniture retailer reiterating its full-year earnings guidance in a trading update.
The numbers: Temple & Webster shares were down 9.7% to $11.39 by 12:45pm AEST.
In a trading update earlier today, the Sydney-based company said business remained strong during the second half, with sales from 1 January to 5 May up 30% compared to the prior corresponding period.
Temple & Webster reported $100 million of net cash, and reiterated full-year underlying EBITDA margin guidance of 1% to 3%, with the company targeting the mid-point of this range.
It also said its "suite of internal AI solutions" are delivering an aggregate conversation rate increase of more than 10%, and handling around 40% of all customer interactions.
The context: E&P Capital analysts noted that Temple & Webster was "growing in a shrinking market", with the overall furniture and homewares sector down 4% in the half to date.
However, the analysts flagged that the company's 2% guidance target was below current consensus expectations of 2.4%.
The source: ASX announcement
