Temple & Webster on Track for FY27 EBITDA of $33M to $40M

Temple & Webster (ASX:TPW) used its AGM to outline a refreshed strategy focused on the mass to mid market and to update trading, which shows revenue down as it deliberately reduces discounting.

For the period from 1 July to 19 October, revenue was down 8% on the prior corresponding period while contribution margin dollars were up 16%. The company says this implies run-rate revenue growth of -4% since its August trading update, compared with -13% at that update. It remains on track for FY27 EBITDA in the range of $33 million to $40 million, an increase of approximately 50 to 80% on FY26, with its growth initiatives funded within that range. FY26 revenue was $665 million and underlying EBITDA was $25.9 million. Under the strategy, the company will reduce entry level ranges over time, take a more disciplined approach to discounting and shift marketing spend towards brand. A Brisbane brand campaign, balanced roughly 50/50 between brand and performance marketing, recorded an 11% uplift in traffic and a 7% uplift in revenue relative to control markets, and is being rolled out to additional markets including Sydney and Melbourne. A program replacing approximately 200 entry-level manchester SKUs with a higher-quality private label range delivered an 8% uplift in revenue and 11% higher delivered margin.

The company expects to return to growth only from mid-February, when it begins cycling periods with similar promotional depth. Its aim of double-digit growth from FY28 carries no supporting figures.