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Post Market Wrap | Temple & Webster Launch Online Home Improvement Website

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Temple & Webster Launch Online Home Improvement Website

  • Home improvement market estimated at $26B annually across nine million dwellings
  • Target market is renovators, builders and tradies as well as homeowners
  • Aiming for material Revenue and EBITDA positive business in FY26
  • Positive trading update with revenue up 23 percent in four months to 30 April
  • Increased share of wallet spend in the home supports continuing growth momentum.

Temple & Webster Group Limited (Temple & Webster or the Group) is an Australian homewares and furniture retailer, with a deliberate focus on technology as a key enabler to drive operational and working capital efficiency, within a ‘capital-lite’ business model. The primary driver of this capital-efficient balance sheet is the internet, in conjunction with data analytics and Artificial Intelligence (‘AI’). 

The brand was founded in 2011 and listed on the ASX as Temple & Webster Group in December 2015. The float followed the acquisition of two other businesses, the Australian operation of Wayfair and Milan Direct.

Launch of DIY online Home Improvement Website 

Temple & Webster have today launched a new online store aimed at DIY home renovators. To be known as The Build (www.thebuild.com.au), the focus is on the home improvement market, estimated at $26 billion nationally, according to IBISWorld Industry Reports. Renovators, builders and tradespeople are the target market, along with digitally native customers. 

The market potential is reinforced by more than nine million owner-occupied dwellings in Australia, where 40 to 60 percent of homeowners undertake or plan to undertake a design project each year. Projects include minor repairs, painting, new bathrooms and kitchens, and redecorating to complete or build home extensions. According to ABS data (based on Council approvals), it is estimated that more than $1 billion in approved renovations occur each month nationally.     

The Group has currently 16 full-time employees as its initial team, comprising buyers and merchandisers, with 200 suppliers providing 20,000 products live on the website across 39 categories. The Group is targeting a material revenue and EBITDA positive business in FY26.  

Trading Update

The Group continues to trade well with revenue up 23 percent for the four months to 30 April, compared to the comparable period in 2021 and up 116 percent compared to 2020. The full-year EBITDA margin has been reaffirmed at approximately three percent, which is consistent with the 2-4 percent EBITDA margin range anticipated at the beginning of the financial year. 

The Group’s diversified supply chain continues to hold up well, ensuring it is well stocked and in a strong position to meet growth in demand going into the fourth quarter of the 2022 financial year.

Looking Ahead

Temple & Webster continue to invest in the Group’s future. This includes investing in data analytics, data personalisation and supply chain management, to support accurate and timely forecasting of optimum inventory levels to reliably fulfil anticipated customer demand. The Group has over 200,000 products on sale from hundreds of suppliers and successful execution of critical success factors such as stock availability is supporting consistent earnings growth in the current market. 

Launch of The Build is a natural growth path for Temple & Webster supported by the obvious cross-sell opportunities between home improvement and furniture and homewares. Significantly, Temple & Webster have stated that the long-term margin profile is expected to be superior to that of Furniture and Homewares. Capturing a greater share of wallet spend in the home at a time of rapid adoption of online purchasing, is certain to maintain the Group’s growth momentum well into the future.   

This Post Market Wrap is presented by Kodari Securities, written by Michael Kodari, CEO at KOSEC.

"Michael Kodari is one of the world's most consistent, top performing investor. A philanthropist and one of the prominent experts of the financial markets, he has been referred to as ‘the brightest 21st century entrepreneur in wealth management' by CNBC Asia and featured on Forbes. Featured on TV as the "Money Expert", on the weekly Sunday program "Elevator Pitch", he is recognised internationally by governments as he was the guest of honour for the event "Inside China's Future", chosen by the Chinese government from the funds management industry, attended by industry leaders, when they arrived in Sydney Australia, on April 2014. Michael and George Soros were the only two financiers in the world invited and chosen by the Chinese government to provide advice, and their expertise on Chinese government asset allocation offshore. With a strong background in funds management and stockbroking, Michael has worked with some of the most successful investors and consulted to leading financial institutions. He was the youngest person ever to appear on the expert panel for Fox, Sky News Business Channel at the age of 25 where he demonstrated his skillset across a 3 year period forming the most consistent track record and getting all his predictions right over that period. Michael writes for key financial publications, is regularly interviewed by various media and conducts conferences around the world."

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Inflation rise reduces chances of Reserve Bank rate cut

Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs

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Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs

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In Short:
– Rate cut likelihood by the Reserve Bank has decreased due to a rise in annual inflation to 3.2 per cent.
– Significant price increases in housing, recreation, and transport are raising concerns for the Reserve Bank.

The likelihood of a rate cut by the Reserve Bank has decreased significantly after a surge in annual inflation.

The Australian Bureau of Statistics reported that inflation for the year ending September rose to 3.2 per cent, reflecting a 1.1 per cent increase.

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Trimmed mean inflation, a crucial measure for the Reserve Bank, was recorded at 1 per cent for the quarter and 3 per cent for the year. The bank anticipates inflation to reach 3 per cent by year-end, while trimmed mean inflation is expected to slightly decrease.

The quarterly rise of 1.3 per cent in September exceeded expectations. Governor Bullock noted that a deviation from the Reserve Bank’s projections could have material implications.

Financial markets reacted promptly, with the Australian dollar rising against the US dollar, while the ASX200 index fell.

The most significant price increases were observed in housing, recreation, and transport, indicating widespread price pressures that concern the Reserve Bank.

Despite the unexpected inflation rise, some economists believe the Reserve Bank may still consider rate cuts in December, viewing current price spikes as temporary due to the winding back of subsidies.

Economic Pressures

Broad-based economic pressures suggest that the Reserve Bank may not reduce interest rates at its upcoming meeting. Analysts highlight the need for ongoing support for households facing cost-of-living challenges.


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Wall Street hits record highs on low inflation

Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

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Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision

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In Short:
– U.S. stocks rose to record highs on Friday due to lower inflation and strong corporate earnings.
– Key earnings reports from major companies are expected next week, influencing market trends.
U.S. stocks rose to record highs on Friday due to lower-than-expected inflation data and positive corporate earnings.The S&P 500 and Nasdaq achieved their largest weekly gains since August. The Dow saw its biggest jump from Friday to Friday since June.

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The Labor Department reported that the Consumer Price Index was slightly cooler than analysts’ predictions, easing concerns about inflation impacts from tariffs. This development suggests a likely interest rate cut by the Federal Reserve at its upcoming meeting.

Ryan Detrick from Carson Group noted the positive inflation news may facilitate forthcoming Fed rate cuts. Despite the ongoing government shutdown affecting data releases, this CPI report provided much-needed clarity.

Earnings reports are continuing, with 143 S&P 500 companies having reported results. Growth expectations for third-quarter earnings have risen to 10.4%. Detrick indicated a strong opening to the earnings season with a significant percentage of companies exceeding expectations.

This coming week, key earnings will be reported from Meta Platforms, Microsoft, Alphabet, Amazon, and Apple, alongside industrial companies like Caterpillar and Boeing.

The Dow rose 472.51 points to 47,207.12. The S&P 500 increased by 53.25 points to 6,791.69, while the Nasdaq gained 263.07 points, reaching 23,204.87.

Alphabet gained 2.7% following a deal expansion with Anthropic. Coinbase saw a 9.8% increase from a JPMorgan upgrade. In contrast, Deckers Outdoor’s shares fell 15.2% after lowering sales forecasts.

Market Trends

Advancing stocks on the NYSE outnumbered decliners by 2.18 to 1. The S&P 500 had 34 new highs, with the Nasdaq recording 124.

Trading volume was 19.04 billion shares, lower than the average of the past 20 days.


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US stocks face tests from Tesla, Netflix earnings

US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data

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US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data

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In Short:
– Earnings reports from Tesla and Netflix might affect U.S. stock performance next week amid high inflation concerns.
– Increased market volatility arises from U.S.-China trade tensions and fewer S&P 500 stocks in an uptrend.
This coming week, earnings reports from companies including Tesla and Netflix are anticipated to impact U.S. stock performance.
Investors are also awaiting delayed U.S. inflation data, which could test market stability as it remains near record highs.Recent trading activity has shown increased volatility, influenced by ongoing U.S.-China trade tensions and concerns regarding regional bank credit risks. The CBOE volatility index has seen a rise, indicating increased market uncertainty.

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The S&P 500 entered its fourth year of growth amidst these fluctuations, having previously experienced a period of calm. Experts suggest market risks are intensifying as valuations reach peak levels.

Market Volatility

Concerns regarding U.S.-China trade relations escalated last week when the U.S. threatened to raise tariffs by November 1 over China’s rare-earth export policies. President Donald Trump is scheduled to meet with President Xi Jinping in two weeks to discuss these issues.

Despite these challenges, major stock indexes gained ground over the week, with the S&P 500 up 13.3% year-to-date. However, a noticeable decline in the number of S&P 500 stocks in an uptrend raises caution among investors about underlying market weaknesses.

The upcoming third-quarter earnings will be closely monitored, especially as the government shutdown halts economic data releases. Companies like Procter & Gamble, Coca-Cola, RTX, and IBM are due to report. The delayed U.S. consumer price index is also expected to provide crucial insights ahead of the Federal Reserve’s monetary policy meeting on October 28-29.


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