Temple & Webster’s 90% H2 sales surge

Furniture and homewares online store Temple & Webster has reaped a 90 per cent improvement in second-half revenue to date after people turned to Internet shopping during the coronavirus pandemic.

There were many sales to new customers among the results to May 31, according to management, which were a big rise on the same period last year.

Year to date revenue is up 68 per cent to $151.7 million compared with the same period last year.

Temple & Webster chief executive Mark Coulter said many new customers were making repeat purchases.

He expects to report full-year figures in late July.

Many Australians are yet to buy homewares and furniture online but the shift is well underway in the US and Europe.

The Kogan online shopping business has increased its efforts to capitalise and in May bought homewares company Matt Blatt.

RBC Capital Markets analyst Tim Piper said the year to date sales growth of 68 per cent was well ahead of RBC estimates.

He said the company was prioritising short-term initiatives to support growth during the pandemic rather than investing in long-term goals.

That may have been why it beat estimates, Mr Piper said.

The main short-term risk to Temple & Webster was that shoppers returned to old habits and stores amid relaxed coronavirus restrictions, he said.

Shares in the company were 8.38 per cent higher at $5.43 at 1133 AEST.

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