Temple and Webster posts maiden full-year profit

After a torrid period, online homewares vendor Temple and Webster has posted its maiden full-year profit.

Temple and Webster furniture and homewares.

Online furniture and homewares vendor Temple and Webster has posted its maiden full-year profit as more consumers look to shop through digital channels.

The ASX-listed retailer has posted earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.1 million for the year ended June 30 2019, compared to a $700,000 earnings loss in financial year 2018.

Revenue for the period clocked in at $101.6m, up 41 per cent year-on-year.

Meanwhile, gross profit for the period was up 36 per cent, from $11.9m to $16.1m, as the retailer welcomed a significant jump in its active customer base.

Temple and Webster posted 37 per cent growth in active customers to 271,000 for the full year, with CEO Mark Coulter saying broader economic conditions were working in the retailer’s favour.

“Despite broader retail challenges we continue to buck the trend with record active customer growth, and our first $1 million day in June.

“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,” he said.

He added that the retailer had a strong start to July trading and was looking to invest in new capabilities over the coming months.

Temple and Webster is getting ready to launch an app to capitalise on the continued growth of mobile as a key sales channel for consumers, as well as increase its private label inventory.

“Now is the time to reinvest, to take advantage of a once-in-a-generation structural shift towards online,” Mr Coulter said.

“This reinvestment strategy supports Temple and Webster’s stated goal of becoming the first place Australians turn to when shopping for their homes and work spaces.”

The healthy full year numbers mark a heartening turnaround for the online retailer, which had a torrid time after listing in 2016.

Widely seen as one of the worst floats of 2016, the retailer’s stock plummeted from an issue price of $1.10 to as low as 13 cents within 12 months.

It has since slowly worked its way back to health and finished today’s session 4.5 per cent stronger at $1.72 a share.