Temple & Webster’s net profit more than doubles

Temple & Webster’s net profit more than doubled in the first half, thanks to an increase in new and repeat customers, and higher average order values.

The furniture retailer’s net profit surged 117.9 per cent year over year to $9 million as revenue soared 23.6 per cent to $313.7 million.

The number of active customers totalled about 1.2 million, up 22 per cent. Moreover, revenue per active customer climbed 2 per cent to $470.

The company noted that its exclusive products now account for about 45 per cent of its revenue.

In addition, artificial intelligence is now handling 60 per cent of pre- and post-sales support interactions, and has resulted in a greater than 50 per cent reduction in customer care costs since the first half of fiscal 2023.

In a trading update, Temple & Webster said it witnessed year-over-year revenue growth of 16 per cent from January 1 to February 10. The growth rate between February 1 and February 10 also accelerated 19 per cent.

“We expect this trend to continue, given easing of comparison growth rates and the ability for us to use the margin flexibility we have built over the first half of the financial year,” said the company.

Temple & Webster reiterated its EBITDA margin guidance of 1 per cent to 3 per cent for the full fiscal year and said it is on track to reach its mid-term goal of $1 billion in annual revenue.

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