Stock Track | Temple & Webster Plummets 30% as Revenue Growth Slows, Missing Analyst Estimates

Stock Track11-26

Shares of Temple & Webster Group Ltd (TPW.AU) plummeted 30.28% in pre-market trading on Wednesday, marking its worst day in more than nine years. The dramatic fall comes as the online homeware retailer reported slower-than-expected revenue growth, disappointing investors and analysts alike.

According to the company's latest update, revenue growth for the period from July 1 to November 20 stood at 18%, a significant deceleration from the 28% growth recorded between July 1 and August 11. This slowdown fell short of Visible Alpha's estimate of 23% growth for the first half of 2026, triggering a sell-off in the stock.

Citi analysts noted that the weakening revenue growth is consistent with the slowdown in web and app traffic they have observed. However, they flagged that the pace of the slowdown is "surprising" given recent updates from rivals, including Nick Scali. The brokerage expressed increasing caution about the near-term outlook, particularly as comparable sales become more challenging to cycle for the remainder of the first half of 2026. Despite the day's significant drop, Temple & Webster's stock remains up 14.2% year-to-date, reflecting the volatile nature of the retail sector in the current economic climate.

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