Temple and Webster reports strong start to FY24

Company News

by Glenn Dyer

Online homewares retailer Temple and Webster (ASX:TPW) has announced a robust beginning to the new financial year, with sales surging, especially during the four-day Black Friday-Cyber Monday period over the weekend.

CEO Mark Coulter stated during TPW's annual meeting on Wednesday that from July 1st to November 27th, 2023, sales were up by 23% year-on-year. This comes after the company reported a 16% jump in sales during the first six weeks of the new financial year, as announced at the time of its 2022-23 earnings release.

The company also noted that the second quarter, spanning from October 1 to November 27, has witnessed a 42% year-on-year growth in revenue. This growth has been partially driven by the launch of their above-the-line brand campaign in Sydney, Melbourne, and Brisbane on October 22.

The Black Friday-Cyber Monday trading period has continued to increase in importance, with this year's four-day period generating $17.4 million in sales, marking a 101% increase from the previous year and including multiple record-breaking days.

Despite a challenging overall furniture and homewares market, TPW continues to expand its market share, highlighting the resilience of its business model and the flexibility of its merchandising strategy. Growing their market share is a strategic priority as they aim to become Australia's largest retailer of furniture and homewares.

Additionally, TPW reported that their $30 million on-market buyback has repurchased 3.9 million shares at a total cost of $19.9 million to date. With a cash balance exceeding $100 million, the company has significant flexibility to support both organic growth and potential inorganic opportunities.

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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