Shares in Temple & Webster have plummeted after the company’s first-half profit missed expectations. According to Citi analyst Sam Teeger, the online furniture retailer’s $5.8 million profit was 32 per cent below forecasts, signalling increased discounting. Temple & Webster is an Australian online retailer of furniture, homewares and decor. The company aims to provide a wide selection of products and a convenient shopping experience for customers.
Teeger noted that while revenue growth had accelerated since the annual meeting trading update, this may have been driven by increased discounting. The company reiterated its FY26 EBITDA margin guidance of 3 per cent to 5 per cent, compared to a consensus of 4.6 per cent, potentially excluding investment in its New Zealand start-up. This detail has raised concerns among investors regarding the company’s profitability outlook.
Despite the profit miss, Temple & Webster’s net cash balance increased to $161 million. Teeger said this provides the company with optionality to pursue both organic and inorganic growth opportunities. However, the market’s immediate reaction focused on the negative aspects of the report.
“While the acceleration in revenue is positive, the deterioration in gross margins is likely to be in focus today,” Teeger commented. In afternoon trade, shares in Temple & Webster were down 28.1 per cent, reflecting investor concerns about the impact of discounting on the company’s profitability.
