Temple & Webster Group Community

Business Model Drop-shipping model whereby products are sent directly to customers by suppliers Reduces the need to hold inventory, allowing for a larger product range Complemented by a private label range sourced directly by Temple & Webster from overseas suppliers Catalysts Profitable in FY24 26% increase in revenue year-on-year (yoy) at $500m. Target of $1b+ yearly on track Market share is increasing (2.5% up 31% yoy) Profitability means cashflow generated is used to fund growth External economic Conditions Consumer confidence and disposable income levels will impact demand for discretionary items Rising interest rates or a slowdown in housing dampens demand.

Key Takeaways Shifting consumer preferences towards sustainability and external e-commerce competition threaten core sales volume, margin stability, and future revenue growth. Ongoing supply chain dependence and emerging regulatory pressures could inflate operating costs, weaken digital acquisition, and create persistent earnings volatility.

Key Takeaways Growth is likely underestimated, as rapid home improvement expansion and regional warehouse localization accelerate market share and gross margin gains. Full AI deployment and demographic shifts may drive operating leverage, cost efficiencies, and revenue growth beyond current forecasts.

Key Takeaways Aggressive expansion in home improvement and AI integration are expected to boost future revenue growth and improve net margins. The asset-light model, brand-building, and private-label focus enhance potential earnings growth and increase pricing power.