The furniture and homewares retailer has reported a 40 percent increase in revenue YOY for the first half of FY19, while detailing its plans for further sustainable growth.
According to Temple & Webster’s HY19 results presentation the business’s position as “the online market leader in furniture and homewares” has led to a profitable six months, with a 40 percent boost in revenue for 1HY19 compared to 1HY18.
The business reportedly attracts 1.2 million website users each month, while boasting 231,000 active shoppers. In the last 12-months, the e-tailer has recorded 32 percent YOY growth in active customers. Thanks to its strong customer-base, the company generated $49.3 million in revenue for the first six months of fiscal 2019, up from $35.2 million in the same period last year.
Mark Taylor, the CFO for Temple & Webster noted in the result’s presentation that the business’s operating costs were down six percent YOY in the first half, “driven by more efficient marketing spend”, with EBITDA up $1.4 million from the prior comparative period. He says this is a direct result of revenue growth.
Temple & Webster’s trade and commercial division also recorded YOY growth of 35 percent, with more customers making repeat purchases over time. Thanks to recent performance, the brand is sitting on $11.5 million in cash with “no debt”.
Over the past few months, Temple & Webster has increased its investments in AI, improving its product recommendations, while also leveraging a back catalogue of proprietary images to generate room ideas and to operate its ‘Shop the Look’ digital experience.
Temple & Webster’s Plans for 2019
Moving forward, the furniture and homewares retailer is looking at increasing its brand awareness through online and offline channels, expanding its private label offering and continuing to invest in its mobile app, personalisation capabilities and augmented reality. In addition to these key points, Temple & Webster is looking to pilot its own delivery network for bulky goods, while also providing further design assistance to customers.
The company has also detailed plans to accelerate its trade and commercial division with the launch of its first by appointment showroom and is reportedly investigating an offline channel through a trial in Melbourne and the launch of its studio in Sydney. As mentioned in previous updates, Temple & Webster has plans to expand in the New Zealand market.
For the remainder of 2019, the brand is confident it will deliver its “maiden full-year profit.”
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