The Temple & Webster Group Ltd (ASX: TPW) share price plunged 28% after it released a trading update for FY26.
Temple & Webster was founded in 2011 and has grown to be one of Australia’s largest online retailers of furniture and homewares.
Temple & Webster FY26 trading update
The company said that it continues to gain significant market share, with revenue from 1 July to 20 November 2025 up 18% year on year.
Temple & Webster explained that key leading indicators and customer cohort performance are trending positively, with active customers at record levels and the proportion of orders from repeat customers continuing to increase. Its average order values are up 3% year on year.
Looking at some of the company’s high performing divisions, Temple & Webster reported that its home improvement segment “continues to outperform” with revenue growth being more than 40% year on year.
Its trade & commercial segment is also performing strongly, with 23% growth year on year. The company said that it has “significant momentum in orders across the holiday and student accommodation sectors”.
Temple & Webster confirmed that it remains on track to achieve its mid-term goal of $1 billion in annual revenue by FY28 at the latest.
The company said that it is still aiming for an EBITDA (EBITDA explained) margin of 3-5% for FY26.
Finally, the company noted that it has a cash position of over $150 million and is ready to action its plans to do an on-market share buy-back.
Now shipping to New Zealand
Temple & Webster launched shipping to New Zealand customers in October 2025, with early signs being positive.
The company is excited by the market opportunity, with New Zealand having proximity to Australian warehouses, comparable regulatory standards and similar customer preferences. New Zealand provides an attractive market structure as it currently has no mid-market focused online player in the furniture and homewares segment.
Temple & Webster revealed that in the first six weeks since launching it has generated over $100,000 in revenue, multiple repeat customers, steady growth in conversion and traffic, and average order values comparable to Australia.
The investment in New Zealand is expected to produce $2 million to $3 million of additional costs for FY26.
Final thoughts on the Temple & Webster share price
Considering that revenue had grown by 28% year on year for the period between 1 July 2025 to 11 August 2025, this latest trading update is showing a significant deceleration in revenue growth since then.
It will be interesting to see whether the sales growth remains sluggish over the rest of the first half of FY26 or if this was just a blip.
For existing shareholders, the 28% fall in the Temple & Webster share price is painful. However, I’m a strong believer that if you still have conviction in the business then any share price falls is just an opportunity to buy more on sale.
I still have conviction in the business and would consider buying shares for my own portfolio at this share price. Unless this is a permanent sales growth slow down, I think it could be an opportunity at this level.
For investors that aren’t so convinced, there are plenty of good ASX growth shares to consider.
