The TEMPLE WEB FPO (ASX: TPW) share price has been absolutely hammered today, falling 69.1% to just 19.5 cents. That’s a loss of 82.3% since their offer price of $1.10 just over two months ago.

What Happened?

TEMPLE WEB FPO, or Temple & Webster Group, is an online retailer which specialises in homewares and furniture which listed its shares on the ASX as recently as December 2015. Notably, its shares were crushed on the day of their IPO which, at the time, I said may have been partially due to its business model:

It’s also possible that investors are being cautious not to get too excited about the prospects of Temple & Webster. Indeed, the company’s business model is reliant on consumers letting go of the need to see and touch items of furniture in-store before making a purchase.”

Today’s fall, however, came after the company released its earnings results for the first half of financial year 2016 this morning. Needless to say, the results weren’t pretty.

It reported first-half revenue of $32.1 million, but put a downside risk estimate of up to 10% on the full-year prospectus revenue guidance of $76.2 million. Worse yet, it also put a $5.5 million, or 65%, downside risk on its guidance for $8.5 million in earnings before interest, tax, depreciation and amortisation (EBITDA).

Now What:

Temple & Webster Group’s results come in stark contrast to those from companies such as Fantastic Holdings Limited (ASX: FAN) and Nick Scali Limited (ASX: NCK), which sell furniture items in-store. Nick Scali reported 11.6% like-for-like sales growth for the same period, while Fantastic Furniture said its same-store-sales were up 15.7%.

Of course, sales across the industry have risen strongly in recent years, largely boosted by surging house prices. With growth in house prices now slowing down however, this could act as a headwind for the industry as a whole and this is worth investors keeping in mind.

Temple & Webster is not immune from this trend. Based on today’s terrible results, and guidance for more pain to come, I think it would be wise to steer clear of the company, for now at least.

Our BEST stock idea for 2016 - FREE!

Our top analysts have recently selected their TOP stock idea for 2016, and with share prices falling, it could be the BEST time to buy! This relatively unknown technology share is growing rapidly and offers a fat, fully franked dividend! Best of all: their top stock idea for 2016 is yours FREE! Just click here, enter your email address and claim your free report - no payment or credit card required!

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.