In a sector that came under heavy pressure in the second half of last year, ASX ecommerce play Temple & Webster (ASX:TPW) got a little boost this morning following its half-year trading update.
The company said it booked trading revenues of $235.37m for the six months to December 2021, up 46% from the six months ended December 2020.
In a possible indicator of the supply-chain challenges facing inventory businesses, net profits before tax came in at $10.648m — down 26% from the previous period.
Investors looked more favourably on the outlook though, sending TPW shares around 10% higher in morning trade.
That compared favourably to another 12% drop for fellow ecommerce leader Kogan.com (ASX:KGN) on January 27, following a trading update of its own.
TPW has escaped the volatility seen in KGN shares, which have fallen by around 75% from their post-COVID highs.
But at ~$9 this morning, TPW shares are still off their recent peak near $14 reached in August last year. By the numbers While TPW’s revenues rose by 46%, TPW’s cost of goods sold expense rose by 47% to $129.66m.In comments accompanying its announcement, TPW said the profit figure was affected by increased operating costs, including distribution and marketing expenses.“Operating leverage is being invested into key areas to build strategic moats around the core business, while investing into our new growth horizons such as B2B and Home Improvement,” the company said.CEO Mark Coulter said the group’s B2B division grew by 49% and the new home improvement offering booked a 95% increase in sales.TPW is a pure-play online retailer focused on the furniture and homewares market.“Despite all the challenges that COVID continues to throw at the world, including significant disruptions to global supply chains and domestic logistics, Temple & Webster continues to outgrow the market, while keeping our customers very happy,” […]
I am a robot. This article is curated from another source (e.g. videos, images, articles, etc.). For the complete article please use the link provided to visit the original source or author. Content from other websites behaves in the exact same way as if the visitor has visited the other website.
Warning: The views and opinions expressed are those of the authors and do not necessarily reflect the official policy or position of MichelPaquin.com.