'Risk for further deceleration': Temple & Webster shares dive on sales growth slowdown
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More news: Temple & Webster shares plummeted in early trade after the online retailer revealed a slowdown in sales growth for the first-half period.
Shares were down 28.8% to $14.55 at 10:55am AEDT. The stock is still up around 25% over the last 12 months.
RBC Capital Markets analyst Wei-Weng Chen said the update showed top-line growth tracking "behind consensus expectations".
First-half revenue growth was 18% year on year, compared to average estimates of 23% growth. It also represents a deceleration from 28% growth provided at the company's August trading update.
What they said: "The market may be disappointed by this update," said Chen.
"With December typically a quieter month for [Temple & Webster], and the business yet to cycle the key [Black Friday-Cyber Monday] sales period, we see potential risk for further deceleration over the remainder of the half."
Temple & Webster reaffirms FY26 guidance as first-half revenue climbs
The news: Furniture retailer Temple & Webster has reaffirmed its full-year guidance after delivering an 18% rise in revenue from the period between 1 July to 20 November.
The numbers: The company said key leading indicators and customer cohort performance are "trending positively", with average order values up 3% compared to the prior corresponding period.
Temple & Webster's home improvement business saw growth of more than 40% year on year, while its trade and commercial segment delivered growth of 23% in the year to date.
The group reiterated its EBITDA margin guidance of 3-5%. It said it is focused on achieving full-year revenue growth within its target range, and remains on track to achieve its mid-term goal of $1 billion in annual revenue.
The source: ASX
