The online retailer on Tuesday reported a 12 per cent decline in revenue from the previous year to $207m, as the end of COVID-19 lockdowns caused customers to return to bricks and mortar shopping.
Sales for the first five weeks of 2023 were down seven per cent on the previous corresponding period, which was significantly boosted by the Omicron outbreak.
RBC Capital Markets analyst Wei-Weng Chen said Temple & Webster made no reference to prior suggestions of a return to double-digit growth in 2022/23, which indicates that the second half is likely going to be more challenging than consensus forecasts.
But despite the drop in earnings, Mr Chen said there were plenty of positives.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) beat consensus estimates by 10 per cent and second quarter trading showed signs of cost pressures abating.
Chief executive Mark Coulter said the company was focused on margin optimisation and cost management, dialling back spending on home improvement site The Build from $10m to $6m.
Shares were sitting around $3.70 at 1pm, representing a six-month low.
Temple & Webster did not announce a dividend.
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