Online furniture retailer Temple & Webster Group Ltd (ASX: TPW)'s share price spiralled upwards in June, hitting highs of over $6.50 and closing the month at $6.31 per share. This represents a 37% increase across the month and a whopping 302% up from its lows in March this year.
Since the end of June, the Temple & Webster share price has further accelerated, hitting all-time highs of above $8 on news that it recently completed a $40 million placement and currently trading around $7.75 at the time of writing
The Temple & Webster share price is up almost 192% for the year, impressive considering the 10% drop in the All Ordinaries (INDEXASX: XAO).
What does Temple & Webster do?
Temple & Webster is one of Australia's largest online retailer of furniture and homewares. The company has seen a spectacular rise since Covid-19 has forced customers to ditch traditional retailers and turn to online-focused businesses like Temple & Webster. The business uses drop shipping, whereby products are sent directly to customers by suppliers.
What drove the Temple & Webster share price up in June?
Temple & Webster has seen its market cap soar to more than $900 million thanks to the company's impressive growth, which saw the share added to the All Ordinaries Index in its most recent rebalance.
In June, the rebounding market (as Covid-19 cases continued to fall) helped lift the Temple & Webster share price higher. Additionally, the strong trading the online retailer had enjoyed in April and May continued, with its June revenue tracking 100% higher.
A business update released on 18 June was another factor that drove the Temple & Webster share price higher. Some highlights from the release include:
- YTD revenue up 68% to $151.7 million
- YTD earnings before interest, tax, depreciation and amortisation up 668% to $7.1 million
- Active customers up 68% to 440,257.
What now for the Temple & Webster share price
The company has been going from strength to strength in 2020, with Temple & Webster CEO Mark Coulter stating in the June update that he is "bullish about the longer-term shift from offline to online."
This is encouraging news for shareholders, who will no doubt be sitting happy with the Temple & Webster share price seeing a gain of close to 400% since this time last year.
