Guess which ASX All Ords stock just reported a 21% revenue jump

The ASX All Ords stock has had a strong start to the new financial year.

| More on:
Two happy woman looking at a tablet.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX All Ords stock Temple & Webster Group Ltd (ASX: TPW) is slipping today.

Shares in the online furniture and homewares retailer closed Friday trading for $12.54. In morning trade on Monday, shares are swapping hands for $12.28 apiece, down 2.1%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.2% at this same time.

This underperformance comes on the heels of the company's AGM address and trading update.

Here's what we know.

ASX All Ords stock slips despite strong FY 2025 start

Investors have yet to react positively despite some strong results reported for the period from 1 July through to last Thursday, 24 October.

The ASX All Ords stock said it has been able to continue gaining market share over the period despite ongoing cost of living pressures impacting Australian consumers.

Temple & Webster announced that revenue for the first not quite three months of FY 2025 is up 21% compared to the same period in FY 2024. Average order values were back in growth, and some 60% of the company's orders came from repeat customers.

Management also noted that margin levels were in line with the company's target range despite some headwinds from higher international freight rates.

Looking at what could impact the ASX All Ords stock in the months ahead, the company highlighted expectations that the November and Black Friday sale period will be increasingly important, especially for online shopping.

Temple & Webster said it remains on track to achieve its medium-term target of $1 billion in annual revenue within three to five years (from FY 2023). Management also reaffirmed earnings before interest, taxes, depreciation and amortisation (EBITDA) margin guidance for FY 2025 in the range of 1% to 3%.

On the balance sheet, Temple & Webster has more than $100 million in cash and no debt.

What did management say?

Commenting on the ASX All Ords stock's FY 2024 performance, Temple & Webster CEO Mark Coulter said:

Our growth was driven by a significant increase in active customers, up 31% year on year. This was driven by healthy growth in both first-time customers and repeating customers with orders from repeat customers up 36% year on year which represented 57% of all orders.

On the technology front, he added:

We continue to make good progress towards building market leading AI, data and technology capabilities. In FY 2024 year we added new hires to the team, combining machine learning and generative AI knowledge.

Looking ahead, Coulter said:

As I mentioned earlier, the media mix modelling analysis provided promising results, giving us confidence to continue our brand investment into FY25, including a cross-channel campaign over the November, December and Black Friday sales period.

How has the ASX All Ords stock been tracking?

The Temple & Webster share price has been a strong performer. Over the past 12 months, shares in the ASX All Ords stock are up 126%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Retail Shares

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Retail Shares

Up 90%, this ASX 200 retail stock's CEO just sold $500,000 worth

What could this mean?

Read more »

View of a mine site.
Retail Shares

Why buying Wesfarmers shares could provide unique lithium exposure

In the last 12 months, the stock has rallied more than 28%.

Read more »

Photo of two women shopping.
Retail Shares

Why one leading fund manager thinks this fallen ASX All Ords stock is a turnaround buy

This is a bargain stock, according to a leading fundie.

Read more »

a woman wearing fashionable clothes and jewellery checks her phone with a satisfied smile on her face in a luxurous home setting.
Retail Shares

Guess which ASX 200 stock just extended its $580 million buyback

Could this draw investor attention to the stock?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Retail Shares

Own Wesfarmers shares? Here's why Bunnings' monster profits are raising eyebrows

Bunnings is the jewel in Wesfarmers’ crown. Some people are questioning whether it should sparkle as much as it does.

Read more »

Woman checking out new laptops.
Retail Shares

Harvey Norman shares see red on ASIC case update

This could put the saga to rest.

Read more »

A man looking at his laptop and thinking.
Retail Shares

Why this investing expert is cashing in some gains on Wesfarmers shares

The ASX 200 stock is up more than 27% over the past 12 months.

Read more »

A woman looks at a tablet device while in the aisles of a hardware style store amid stacked boxes on shelves representing Bunnings and the Wesfarmers share price
Retail Shares

Why today is a big day for Wesfarmers shares

Why is everyone talking about Wesfarmers shares today?

Read more »