Speaking to Power Retail, Temple & Webster’s CEO, Mark Coulter, says the company’s Q1 results exceeded his expectations. Moving forward, he says that delivery to New Zealand is in the cards, as well as more private-label lines and data-driven promotions.
In line with its recent positive trading updates, Temple & Webster has had a profitable quarter, posting an EBITDA of +$0.2 million. According to the company’s announcement, gross revenue grew 39 percent year-on-year, while active customers rose by 30 percent compared to the same period last year, to a total count of 214,000.
“Looking back at the start of the year, we were growing at a steady rate of about 34 percent. We ended up finishing on 39 percent, so you can really see the continued growth from across the quarter,” Coulter says.
“I was actually quite worried when I look back six months ago at the housing downturn and the impact it’s had on other markets, but we’ve ended the quarter with a strong result, which is great to see.”
Thanks to the e-tailer’s continued growth, the business has reportedly on-boarded a record number of first-time customers, with a cost per acquisition of $55. Repeat customers have also been profitable for the furniture and homewares retailer, with 45 percent of its orders from the last quarter coming from consumers who have previously shopped through the company’s online store.
According to Coulter, Temple & Webster’s positive results can be attributed to a number of factors, including everything from improved conversion rates to strong promotional activity.
“Our conversion rate is higher, we have better pricing, better products and better data-driven promotional activities, as well as greater brand awareness. There’s a whole lot of things going on that have all come together in our favour,” he says.
Coulter also believes that Temple & Webster’s improved marketing activities and continued growth will pay off for customers moving forward, as the business looks to give back to its community of shoppers.
“We always said from the beginning that we will start to pass on some pricing discounts to our customers as we grow. As we’re able to start doing this, we’re actually seeing even more growth as a result.”
Temple & Webster’s CEO also believes the company is now well-positioned as a “market leader”, which will allow the business to capture the “migration of spend from offline to online”.
With approximately four percent of furniture and homewares currently purchased online in Australia, Coulter says Temple & Webster is stepping up to claim a large percentage of this spend, while also working to increase the level of trust consumers place in the online furniture and homewares market.
“We’re going to be working on a lot of exciting projects”, Coulter says. “We have our own delivery trucks, new promotions coming up, and we’re looking to start shipping to New Zealand soon.
“What you’ll be seeing is a continuation of the journey, and we’re really excited for the future.”