Temple & Webster defies market downturn with record $498m revenue

Despite economic headwinds, online homewares and furniture retailer Temple & Webster (ASX: TPW) has reported record revenue of $498 million for the 12 months to 30 June.

The figure represents a 26% year-on-year growth driven by a record customer base of 1.1 million (up 31% on the previous period), with repeat customers accounting for 57% of all orders.

EBITDA of $13.1m at a 2.6% margin was at the top end of the group’s guidance, while an asset-light, negative working capital business model resulted in free cash flow for the period of $25m and the company closed the year with a cash balance of $116m.

Bucking the trend

Chief executive officer Mark Coulter said the year-end financials were stronger than expected.

“Despite significant cost-of-living pressures, we have once again bucked the trend with another great set of results,” he said.

“Our revenue was up in a market that was down 4%, which shows the strength in our product range and the value we offer customers.”

Strong start to FY25

The company has posted a strong start to the 2025 financial year, with trading up 26% year-on-year for the 41 days to 11 August and is reportedly on track to a mid-term annual sales target of at least $1 billion.

“We continue to execute on our ambition of growing market share and establishing Temple & Webster as the go-to brand for the next generation of home shoppers,” Mr Coulter said.

“We are progressing well against our strategic goals of developing leading artificial intelligence (AI) and data capabilities, such as generative AI ‘solutions in a box’, which are powering a suite of tools from product recommendations to live chat interactions with customers.”

He said the company had logged millions of dollars in cost base savings and conversion rate improvements of more than 10% due to AI initiatives launched on the website.

CFO appointment

Temple & Webster also announced the appointment of Cameron Barnsley as chief financial officer, effective early next month.

Mr Barnsley spent 16 years with financial services company Morgan Stanley in the roles of executive director and head of technology (Australia).

He has advised companies in the technology and e-commerce sectors globally in relation to mergers and acquisitions, capital raisings, capital management and strategic projects.

Mr Coulter said Mr Barnsley would be an “invaluable addition” to Temple & Webster’s next phase of growth.