- Temple & Webster Group (TPW) has released a trading update and announced its strategy for capitalising on the shift to online shopping
- The online homewares marketplace estimates 9 per cent of all furnishings in Australia were bought online in 2020, and it expects that trend to grow further
- As a result of the scale-up, the company flagged its finances would return to pre-COVID-19 levels
- TPW’s revenue over the March quarter was up 112 per cent compared to the same time last year while active customers reached around 750,000
- Shares in Temple & Webster are trading up 0.98 per cent at $10.86 per share
Temple & Webster Group (TPW) has released a trading update and announced its strategy for capitalising on the shift to online shopping.
The online homewares marketplace estimates 9 per cent of all furnishings in Australia were bought online in 2020, compared to 5 per cent in 2019.
The company argues that growth will continue, pointing to data from the U.S. which estimates almost 20 per cent of homewares are bought online.
“You only need to look at the U.S. to see how the eCommerce market is playing out, and why we remain bullish about the shift from offline to online,” CEO and Co-founder Mark Coulter said.
“We are at the start of this once in a generation shift, and now is the time to put our foot down to secure market leadership and ensure we are the brand for the next generation of furniture shopper,” he added.
To scale-up its growth, Temple & Webster wants to build strong brand awareness, increase conversion, strengthen its customer experience and expand and differentiate its products.
In order to fund this strategy, TPW flagged its financials would return to pre-COVID-19 levels of around 2 per cent and 4 per cent earnings before interest, taxes, depreciation and amortisation (EBITDA) levels.
“We are committed to remaining profitable even during this scale-up phase and have set our target EBITDA levels accordingly,” the company stated.
Meanwhile, Temple & Webster also revealed today that its revenue over the March quarter was up 112 per cent compared to the same time last year.
Additionally, the online homewares business hit a total of around 750,000 active customers during the period.
Following today’s update, shares in Temple & Webster are trading up 0.98 per cent at $10.86 per share at the close of business on Tuesday.