ASX All Ords stock Temple & Webster Group Ltd (ASX: TPW) is slipping today.
Shares in the online furniture and homewares retailer closed Friday trading for $12.54. In morning trade on Monday, shares are swapping hands for $12.28 apiece, down 2.1%.
For some context, the All Ordinaries Index (ASX: XAO) is up 0.2% at this same time.
This underperformance comes on the heels of the company's AGM address and trading update.
Here's what we know.
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ASX All Ords stock slips despite strong FY 2025 start
Investors have yet to react positively despite some strong results reported for the period from 1 July through to last Thursday, 24 October.
The ASX All Ords stock said it has been able to continue gaining market share over the period despite ongoing cost of living pressures impacting Australian consumers.
Temple & Webster announced that revenue for the first not quite three months of FY 2025 is up 21% compared to the same period in FY 2024. Average order values were back in growth, and some 60% of the company's orders came from repeat customers.
Management also noted that margin levels were in line with the company's target range despite some headwinds from higher international freight rates.
Looking at what could impact the ASX All Ords stock in the months ahead, the company highlighted expectations that the November and Black Friday sale period will be increasingly important, especially for online shopping.
Temple & Webster said it remains on track to achieve its medium-term target of $1 billion in annual revenue within three to five years (from FY 2023). Management also reaffirmed earnings before interest, taxes, depreciation and amortisation (EBITDA) margin guidance for FY 2025 in the range of 1% to 3%.
On the balance sheet, Temple & Webster has more than $100 million in cash and no debt.
What did management say?
Commenting on the ASX All Ords stock's FY 2024 performance, Temple & Webster CEO Mark Coulter said:
Our growth was driven by a significant increase in active customers, up 31% year on year. This was driven by healthy growth in both first-time customers and repeating customers with orders from repeat customers up 36% year on year which represented 57% of all orders.
On the technology front, he added:
We continue to make good progress towards building market leading AI, data and technology capabilities. In FY 2024 year we added new hires to the team, combining machine learning and generative AI knowledge.
Looking ahead, Coulter said:
As I mentioned earlier, the media mix modelling analysis provided promising results, giving us confidence to continue our brand investment into FY25, including a cross-channel campaign over the November, December and Black Friday sales period.
How has the ASX All Ords stock been tracking?
The Temple & Webster share price has been a strong performer. Over the past 12 months, shares in the ASX All Ords stock are up 126%.
