Corporate: Furniture e-retailer Temple & Webster doubles half-year earnings; shares rally
Temple & Webster (ASX:TPW) climbed over 21 per cent this morning after telling investors it more than doubled its earnings for the first half of fiscal 2o2o.
The online retailer, which specialises in furniture, was one of the first companies to release half-yearly results ahead of the February 28 deadline.
It made $74.1m in revenue, up 50 per cent year on year, and more than doubled its earnings to $2.3m. It also claimed to be cash flow positive, ending the half year with $15.7m cash at bank.
CEO Mark Coulter reckons Temple & Webster clearly has a good strategy.
“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 said.
“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.”
Temple & Webster plans to reinvest some of its newfound wealth into growth initiatives.
The company has grown substantially in the last 12 months, it is now up over 150 per cent on the ASX.
Another stock that climbed off the back of a strong half yearly result was pot player Ecofibre (ASX:EOF), which rose 8 per cent this morning. It booked $29m in revenue, up 118 per cent from the prior corresponding period, and a $7.1m profit after tax.
Speedcast (ASX:SDA) is set for another disappointing result, telling shareholders it expects the 2019 calendar year result to be about 10 per cent below guidance. CEO PJ Beylier resigned in light of the results.
Gage Roads Brewing (ASX:GRB) reported a slightly softer result than the prior corresponding period. Overall revenue was up 10 per cent to $19.3m and unaudited earnings came in at $300,000. However, a couple of its sales channels were down including national chains.