Disappointed investors have sent Temple & Webster stock to a seven-month low after the high-profile online furniture and home goods retailer revealed that sales were lower than expected.
Its revenue was up 18 per cent in the period from July 1 to November 20, chief executive Mark Coulter told the company’s annual general meeting on Wednesday.
But RBC Capital Markets analyst Wei-Weng Chen said the consensus expectation was for 23 per cent growth in the first half of this financial year.
Eighteen per cent growth represented a sharp deceleration from the 28 per cent growth Temple & Webster announced in August, Mr Chen noted.
With December typically a quieter month for the company, RBC sees potential risk for further deceleration over the remainder of the half.
Around 11am, TPW shares were down 28.4 per cent to $14.63, the lowest level since early April.
Mr Coulter said that Temple & Webster was making significant market share gains, key leading indicators were trending positively, and the proportion of orders from repeat customers was continuing to increase.
Temple & Webster began shipping to New Zealand in October and the launch was off to a great start, Mr Coulter said, with revenue surpassing six figures and total orders exceeding expectations.
The company posted $601 million in revenue in 2024/25, up 21 per cent year-on-year, and remains on track to achieve its mid-term goal of $1 billion in annual revenue, he said.
The company has a cash position of over $150 million and no debt.