Temple & Webster sales surge by 90 per cent on lockdown spending
A swell of Australians buying crockery, cushions or a new credenza has helped online homewares and furniture retailer Temple & Webster nearly double its sales during the coronavirus lockdown.
In a trading update on Thursday morning, the ASX-listed retailer revealed revenue for the five months to the end of May had grown 90 per cent to over $77 million, bringing the company's year-to-date revenue to $151.7 million.
"We remain bullish about the longer-term shift from offline to online driven by changing customer preferences and demographics.": Temple and Webster CEO Mark Coulter.Credit:Eamon Gallagher
Profit also soared, with Temple & Webster's earnings before interest, tax, depreciation and amortisation (EBITDA) for the period increasing nearly sevenfold to $7.1 million. For the entire 2019 financial year, the company's EBITDA was just $1.1 million.
The online retailer also saw a boom in active customers, which increased 68 per cent to 440,257 as shoppers shifted their shopping online. All product categories saw "significant" growth, the company said.
Chief executive Mark Coulter told shareholders the business had attracted a number of first-time customers during the lockdown period and many of them had returned to shop a second or third time.
"These customers are experiencing the benefits of our channel, including range, convenience and value," he said. "As a team, we remain proud that we have played a small part in being able to help Australians set up their homes during this crisis."
Temple & Webster has not been the only online retailer to benefit from the mass closure of bricks and mortar shops during April and May, where the COVID-19 pandemic forced Australians to stay indoors.
Digital electronics and appliances seller Kogan has reported repeat month-on-month sales growth during the lockdown, with the company now worth more than both Myer and David Jones combined.
Other traditional retailers, such as JB Hi-Fi, Accent Group and Super Retail Group, have also reported huge jumps in online trade, prompting some to accelerate the closure of their physical locations.
Temple & Webster's sales have continued to boom in June, tracking up 100 per cent compared to last year. Like many other retailers, Mr Coulter believes the online shift will be a longer-term change, one which Temple & Webster is well equipped for, he says.
"We remain bullish about the longer-term shift from offline to online driven by changing customer preferences and demographics," he said.
"Our strategy of being a category specialist, with a clear customer offering built around the largest range of furniture and homewares in the country, combined with the most inspirational content and the best customer service continues to resonate with our customers."
Shares in Temple & Webster hit a low of $1.57 in late March, in line with the broader market plunge, however, they have soared 220 per cent since then to trade at an all-time high of $5.01 at the close on Wednesday, valuing the company at over half a billion dollars.