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1
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· Posted on
February 21, 2024

Temple & Webster's NPAT and (yes) it's the supply chain

The online furniture and homewares retailer's sales are up but the supply chain is still kicking its profits.

What's the key learning?

  • Temple & Webster's NPAT is down by 40% due to supply chain issues and high shipping costs
  • The company is still confident there is more growth opportunity in Australia
  • If the US is anything to go by, online penetration of homewares and furniture hasn't hit its peak.

Background: Temple & Webster is an online furniture and homewares retailer. It was founded back in 2011, and it went public in 2015.

What happened: After a couple of rocky years, the company has started to see some real growth. Their revenue was up 46% to $235 million for the six months to December 31.

What else: Buuut it's not all diamonds and roses because big, fat shipping costs, supply chain pain and heavy marketing investment pulled net profits after tax down by 40%. Still, if the US is anything to go by, Temple & Webster has a lot of room for growth here in Oz.

So what's the key learning?

💡In the Aussie market, industry trends are often set by our friends over the pond in the US.

💡 Cases in point:

  • We had the marketplace trend start with Amazon and eBay over in the US, then we saw Kogan and Catch start here.
  • We had the OG buy now, pay later companies like Affirm launch in the US in 2012...and then Afterpay started here in 2016.

💡Online penetration in the homewares and furniture category is at around 10% in Australia. In the US? It's more than double that. So, there's a good chance Temple & Webster has a way to go here in Oz.

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