Is it bad news that the Temple & Webster (ASX:TPW) share price lost 26% over a week?

The Temple & Webster share price has been on a downward slide since the day of its AGM, losing 26% over a week. Is it time to sell?
The post Is it bad news that the Temple & Webster (ASX:TPW) share price lost 26% over a week? appeared first on Motley Fool Australia. –

Two men react in shock at Iluka share price drop

Temple & Webster Group Ltd (ASX: TPW) has seen its shares fall by 6.7% today. This means the Temple & Webster share price has lost 26.3% since the market opened on Tuesday last week. The slide began with the company AGM. While there has undoubtedly been some profit taking, many investors appear to be unnerved by insider selling of the two founders. 

Nonetheless, the quarterly update was beyond expectations. The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the September quarter was greater than all of FY20. Year to date revenues were also up, this time by 138% versus the previous corresponding period.

Moreover, retail NAB online sales index suggests the homewares and appliances category grew around 57% during the months of April to July. Meanwhile, Temple & Webster grew by 150% at the same time.

Is the Temple & Webster share price fall a problem?

CEO Mark Coulter recently spoke out about the company, its growth, and the recent share sales. The company’s stellar growth during FY20 was undoubtedly due to the much-talked-about shift to online shopping during the COVID-19 pandemic. However, Mr Coulter believes there is an air of inevitability about it. He believes it is only a matter of time before the company is larger than both Ikea and Harvey Norman Holdings Limited (ASX: HVN) in Australia. 

In an interview with Ticky Fullerton, in The Australian, Mr Coulter said:

In the very early days it did accelerate fairly quickly. Then like all businesses it reached a hard bit, you get all the scaling problems and then we jumped again. We bought a couple of our competitors, we did a jump, we listed, then we went back to the drawing board and thought about what the new Temple & Webster is.

It’s really the last few years that everything has worked together. It feels like the site is good, the range is good, the team is good, our customers services is good, our delivery experience is good and that’s made the Temple & Webster you see today.

Foolish takeaway

There are a number of takeaways that may impact the Temple & Webster share price. First, despite the founders selling off shares, the company is currently performing better than it has at any time in its history. Second, the times appear to suit the company. It has benefited from the pandemic shift to online shopping. Third, and finally, the company CEO clearly has a high level of ambition for the company.

According to its AGM presentation, Temple & Webster remains dedicated to regularly adjusting its product range, and deepening its digital advantage. 

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is it bad news that the Temple & Webster (ASX:TPW) share price lost 26% over a week? appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!