Temple & Webster boosted by Millennials entering furniture market

Temple & Webster boosted by Millennials entering furniture market

Online furniture and homewares retailer Temple & Webster (ASX: TPW) has followed up its first full year profit result in FY19 with a healthy half yearly result.

The company is seeing its pure play model pay off as the Millennial market begins to enter its target demographic, with that gamble paying dividends during 1H20.

The group reported revenue of $74.1 million in 1H20, up 50 per cent year on year, with its active customer base up 45 per cent on 1H19.

Temple & Webster CEO Mark Coulter says the company is experiencing growth as more Australians cotton on to the brand.

"Temple & Webster has had another amazing half, with revenue growing 50 per cent year on year," says Coulter.

"This was primarily driven by an increase in active customers, with more than 300,000 Australians shopping with Temple & Webster in the last 12 months."

"As market leader we remain in the best position to take advantage of the continued shift from offline to online driven by changing customer preferences and demographic shifts. 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."

The company certainly expects things to continue growing as it continues to capture a large slice of the $13.9 billion addressable market.

As the online leader in the furniture and homewares market Temple & Webster is comparably an early adopter in the retail niche, with only four to five per cent of the sector having moved online.

Temple & Webster anticipates its recently profitable business model will only continue to grow as the Millennial generation enters its target demographic of 35 to 65 year old's.

The company also cites the adoption of faster internet speeds, the entrance of Amazon into Australia and new technologies like augmented reality as structural changes in the company's favour going forward.

Looking to the remainder of FY20 the company says the second half has started well, with YoY revenue growth of >50 per cent.

Temple & Webster will be reinvesting short term operating leverage into growth initiatives like technology, data, mobile, private label and logistics, all while remaining profitable.

Shares in Temple & Webster are up 17 per cent to $3.31 per share at 10.45am AEDT.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

How tech rebooted economics and platforms broke the invisible hand

How tech rebooted economics and platforms broke the invisible hand

Growing evidence and new research explain the evolution of economic...

Monash IVF to enter WA market after agreeing initial $9.4m deal to acquire fertility provider PIVET

Monash IVF to enter WA market after agreeing initial $9.4m deal to acquire fertility provider PIVET

Reproductive care specialist Monash IVF Group (ASX: MVF) has e...

Pet food startup ilume’s Fitbit for dogs is setting a new standard for animal health and wellness

Pet food startup ilume’s Fitbit for dogs is setting a new standard for animal health and wellness

In the same way that Apple, Garmin and Fitbit have revolutionised h...

Twiggy takes hands-on role at Fortescue as new leaders appointed to green hydrogen business

Twiggy takes hands-on role at Fortescue as new leaders appointed to green hydrogen business

Fortescue Metals Group (ASX: FMG) has announced a major restructure...