Temple & Webster Group Ltd (TPW) shares fell 17% to AUD 4.21 after the Australian furniture and homewares retailer reported record revenue for FY2026 but provided a cautious outlook for the first half of FY2027.
The company reported FY2026 revenue of AUD 665 million, an 11% increase from the prior year, driven by a 51% contribution from private label and exclusive products. EBITDA totaled AUD 21.9 million, with underlying EBITDA of AUD 25.9 million excluding one-off costs. Active customers exceeded 1.3 million, while repeat orders reached 62% of total orders. The company maintained a cash balance of AUD 123 million with no debt.
Executives highlighted a challenging consumer environment, noting that trading in the first seven weeks of FY2027 declined 13% year-on-year. Susie Sugden, CEO, emphasized a focus on core growth rather than macroeconomic conditions. Mark Coulter, Executive Chair, cited record revenue but acknowledged softening demand in the final months of FY2026.
FY2027 guidance included an EBITDA target of AUD 33 million to AUD 40 million, representing 50% to 80% growth from FY2026. Delivered margin is expected to range between 31% and 33%, with EBITDA margins projected at 5% to 6%. Depreciation and amortization expenses are forecast at AUD 13 million to AUD 14 million, while capital expenditure is expected to total AUD 6 million to AUD 8 million.
Cameron Barnsley, CFO, noted delivered margins improved to 19% in Q4 FY2026 from 15% for the full year. The company also reported stable marketing ROI of 1.4 and a customer acquisition cost of AUD 105 for the last 12 months. Adjacent growth initiatives, including home improvement and trade segments, contributed AUD 117 million to revenue in FY2026.
Temple & Webster’s share price decline brought it to near its 52-week low of AUD 4.12, down sharply from its 52-week high of AUD 25.61.
