By Stuart Condie
SYDNEY--Shares in Australia's Temple & Webster shed a third of their value, hitting a nine-month low after the online furniture retailer's sales growth missed market expectations.
The ASX-listed company on Wednesday said sales were up 18% on a year earlier so far in its 2026 fiscal year, which started July 1. That compared with an average analyst forecast of 23% revenue growth for the whole of the December half.
About three hours into the trading day, the stock was down by 33% at 13.67 Australian dollars, equivalent to US$8.84. It last traded at that level in February.
Before the drop, which wiped almost A$820 million from Temple & Webster's market capitalization, the stock had increased almost sixfold in value since April 2023.
Most analysts remained bullish ahead of Wednesday's trading update, according to data compiled by Visible Alpha. Analysts have recommended the retailer for its strong sales growth, capital-light fulfillment model, and expansion into home-improvement products.
RBC Capital Markets analyst Wei-Weng Chen, who has a sector-perform rating on the stock, warned in a note published after the update that the pace of first-half sales growth could be even lower than 18% because December is usually a slower sales month for Temple & Webster.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
November 25, 2025 21:34 ET (02:34 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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