Temple & Webster shares sink 9% after profit drop

The news: Furniture and homewares ecommerce platform Temple & Webster has posted an after tax annual profit of $8.3 million, down 30.6% on the previous year despite a second-half uptick.

The numbers: Total revenue fell by 7.2% to $395.5 million. TPW shares were trading more than 9% lower at 11.20am AEST. Temple and Webster will not pay a dividend this year.

The context: Temple & Webster says Australian online markets are still underpenetrated and is targeting more than $1 billion in annual sales within the next five years. Despite its earnings downtick, the company said it had retained around 90% of revenue achieved during the Covid pandemic, when online purchases spiked amid lockdowns and government stimulus.