One of the best performers on the All Ordinaries index on Tuesday was the Temple & Webster Group Ltd (ASX: TPW) share price.
The online furniture and homewares retailer’s shares surged as much as 15% higher to $13.33 at one stage.
The Temple & Webster share price ultimately gave back some of these gains but still ended the day 7.5% higher at $12.47.
Why was the Temple & Webster share price racing higher?
Investors were bidding the Temple & Webster share price today following the release of its full year results.
That release revealed that the company’s strong form continued in FY 2021, with record revenue, profits, and customer numbers.
For the 12 months ended 30 June, Temple & Webster delivered an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million. The latter would have been even stronger had it not been for a one-off distribution cost of $2.9 million related to shortages in available 3PL space and port related issues. These issues have now been resolved.
Also supporting the Temple & Webster share price was management’s update on its performance so far in FY 2022.
It advised that the company’s revenue between 1 July to 24 July had grown by 39% compared to the prior corresponding period. This is particularly impressive given the strong sales it was cycling during this period.
I was fortunate to have a chance to speak with Temple & Webster’s CEO Mark Coulter and CFO Mark Taylor following the release.
Mr Coulter appeared rightfully pleased with the FY 2021 result and spoke very positively about the future.
He highlighted the company’s leadership position in an online furniture and homewares market which is still in the early stages of its shift online.
In fact, you only need to look at the US market to see just how far behind Australia is and how much of a runway for growth Temple & Webster has.
At present, approximately 25% of US furniture and homeware sales are made online. Whereas in Australia, an estimated 7% to 9% of sales industry sales were made online in 2020.
As adoption increases, Temple & Webster stands to benefit greatly. Which is why the company is accelerating its investment in future growth to take market share. This is with the ultimate goal of becoming the largest retailer (online and offline) for furniture and homewares in Australia.
The Temple & Webster share price is up 51% since this time last year.