Temple & Webster has reported a drop in year-to-date revenue, as the furniture retailer reduced promotions and raised prices on certain products as part of a new strategy to boost profitability.

From July 1 to October 19, revenue fell 8 per cent year-on-year, while contribution margin dollars rose 16 per cent.

According to CEO Susie Sugden, the company has deliberately reduced promotional depth and raised prices on some ranges, which explain the decline in sales and growth in margin contribution.

“Since our update in August, trading has improved, and the business has continued to step up its profitability, in line with our strategy,” Sugden said.

“In terms of the shape of FY27, from mid-February we begin to cycle periods with similar promotional depth and intensity as our current mix.

“At this point we expect to return to growth, with our improved unit economics and our strategy to focus on sustainable top-line and bottom-line growth,” he added.

The company remains on track to deliver FY27 EBITDA of $33 million to $40 million, representing a 50-80 per cent increase from FY26.

“With improving unit economics and a strong balance sheet, we remain focused on becoming the largest retailer in our category in Australia,” Sugden continued.

The focus is on returning to sustainable double-digit revenue growth from FY28, he added.

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