Temple & Webster (TPW) shares rally on positive FY22 & guidance
FY22 results for the ecommerce business were released to market this morning showing mixed numbers for FY22 and FY23. Revenue grew more than 30% to $426m which was slightly behind expectations. EBTIDA was better though with margins coming in at 3.8% for the year, at the high end of guidance. This also included a $1.7m spend on The Home, Temple & Webster’s new home improvement site which has started positively. FY23 has started slowly, though they are cycling on lockdown boosted sales from last year. FY23 sales were down 17% for the period to August 14th, though management said this was as expected and growth to return to double digit levels “once we finish lapping COVID lockdowns.” EBITDA margin guidance for the year was also improved to 3-5%.
Overall a mixed result, however EBITDA margin growth looks to outweigh any sales miss.
