Amid all the downgrades, closures, job losses there was a good news story from retailing yesterday. Online furniture and homewares retailer, Temple and Webster saw its shares surge more than 23% after it reported a strong result for the half-year period despite those concerns of a weak Christmas period.
The retailer said its revenue for the half was $74.1 million, up 50% on the prior corresponding half and well ahead of market estimates of $68.5 million.
Earnings before interest, tax, depreciation and amortisation also beat analyst forecasts, coming in at $2.3 million, a 130% increase from the $1 million in EBITDA reported for the first half of 2019.
The millennial-focused pure-play retailer also saw a significant boost to active customers, up 45% year on year to 330,000.
“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 is working,” said chief executive Mark Coulter.
It also provided investors with a taste of trading conditions for the new year, saying revenue for January was up over 50 percent year on year. However, the company warned it was “watchful” of broader trading conditions.
The shares ended at $3.49, up 23.2%. This is now the third six month period in a row that the company – it was on the edge of collapse a couple of years ago) has reported solid improvements in key metrics such as revenues and EBITDA
The company said it was cash-flow positive half, with ending cash of $15.7 million and no debt. Directors said the strong revenue performance had continued into January