Temple & Webster’s revenue significantly grew in the fiscal first half, driven by growth in both repeat and first-time customers.
The online furniture retailer saw its revenue increase 23 per cent to $254 million while net income rose 6 per cent to $4.1 million in the six months to December 31.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) climbed 2.3 per cent to $7.5 million and the EBITDA margin was at 2.9 per cent, at the top end of the full-year guidance.
“Pleasingly, our growth was driven by both first-time customers and repeat customers, which led to us crossing the 1 million active customer mark in February this year,” said Temple & Webster CEO Mark Coulter.
“This was in the face of some of the toughest headwinds to our category we have ever seen due to the current economic conditions.”
The company targets to achieve $1 billion in annual sales within three to five years by becoming the top-of-mind furniture and homewares brand, generating the majority of revenue from exclusive products and investing in technology such as artificial intelligence and data.
It is also prioritising lowering its fixed costs percentage to obtain a price and margin advantage and building scale through adjacent growth plays.
“The online market remains under-penetrated in Australia and we continue to take advantage of this once-in-a-generation opportunity to capitalise on the long-term structural shift to online,” said Coulter.
CFO stands aside
Meanwhile, Temple & Webster said its CFO Mark Tayler has decided to step down from the position but will remain in the company focusing on investor relations.
The company has already launched a search for a replacement and Tayler will continue in his role until a successor is appointed.