Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Temple & Webster (ASX:TPW) share price soars on strong start to FY24

The Temple & Webster Group Ltd (ASX: TPW) share price has jumped 15% after the business revealed an astonishing FY24 trading update.

It’s an online-only furniture and homewares selling hundreds of thousands of products.

Very strong start to FY24

The company reported FY24 has started “strongly” with sales from 1 July 2023 to 27 November 2023 up 23% year on year. That came after a good finish to FY23.

The second quarter of FY24 has seen an acceleration of growth with revenue up 42% year on year. That’s for the period of 1 October to 27 November, which has partly been supported by the launch of the ‘above-the-line’ brand campaign in Sydney, Melbourne and Brisbane, which started on 22 October.

Temple & Webster revealed that the Black Friday to Cyber Monday trading period continues to grow in importance as customers bring forward their Christmas shopping. This year, the 4-day period saw $17.4 million of sales, up 101% year on year, with “multiple record days”. The Temple & Webster share price could be increasingly impacted by this period in the coming years.

The company boasted it has continued to grow its market share at a time when the overall furniture and homewares market is “down”, which reflected the “resilience” of the business model and the “flexibility” of its merchandising strategy.

Temple & Webster stated growing its market share is a key strategic focus, which supports its goal of becoming “Australia’s largest retailer of furniture and homewares”.

Balance sheet and profitability

The retailer revealed that its $30 million share buyback has bought back 3.9 million shares at a total cost of $19.9 million to date. It still has a cash balance of more than $100 million which “provides significant flexibility to accelerate both organic growth and potentially inorganic opportunities.”

Temple & Webster also reaffirmed its EBITDA (EBITDA explained) margin guidance for FY24. It’s expecting its FY24 to FY25 EBITDA margin to be between 1% to 3% after a huge investment in marketing, though the ‘business as usual’ EBITDA margin is expected to be between 3% to 6%.

Temple & Webster share price outlook

If the company keeps growing its revenue at a rate of more than 10% per year for many years in a row, it will likely be successful in its goals of $1 billion sales and ultimately becoming a very large player in the homewares and furniture space.

I think it’s one of the best retailers in Australia, which is why I recently invested at a substantially lower price than right now. The next time it suffers a 30% sell-off, I may decide to dive back in and buy a few more shares.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report — or get it emailed to you — for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of Temple & Webster.
Skip to content