One of the best performers on the ASX on Tuesday has been the Temple & Webster Group Ltd (ASX: TPW) share price.
In morning trade the online homewares and furniture retailer’s shares have rocketed 20% higher to $3.40.
Why is the Temple & Webster share price rocketing higher?
Investors have been fighting to get hold of Temple & Webster’s shares following the release of its half year results this morning.
During the six months ended December 31, Temple & Webster reported revenue of $74.1 million. This was a sizeable 50% increase on the prior corresponding period.
This was driven partly by a 45% increase in active customers to more than than 330,000.
Also growing very strongly was its EBITDA. That came in at $2.3 million during the half, which was up a massive 130% since this time last year.
Another positive was that Temple & Webster was cash flow positive during the half. This led to it ending the period with cash of $15.7 million and no debt.
Temple & Webster’s CEO, Mark Coulter, was rightfully pleased with the half and appears confident on the future.
He said: “Temple & Webster has had another amazing half, with revenue growing 50% year on year. This was primarily driven by an increase in active customers, with more than 330,000 Australians shopping with Temple & Webster in the last 12 months.”
“As market leader we remain in the best position to take advantage of the continued shift from offline to online driven by changing customer preferences and demographic shifts. Our strategy of being a category specialist, with a clear customer offering built around the largest range of furniture and homewares in the country, combined with the most inspirational content and the best customer service is working,” he added.
The good news is that its strong form has continued in the second half. Management revealed that its year on year revenue growth stood at over 50% at the end of January.
Rival homewares retailer Adairs Ltd (ASX: ADH) is pushing slightly higher this morning on the news.
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