Temple & Webster reports 8% revenue drop as it cuts heavy discounts

• Temple & Webster reported an 8% drop in revenue so far this financial year while shifting away from heavy discounts.
• The company maintained its full-year earnings forecast of $33 million to $40 million and expects revenue growth to return by late February.
• The online retailer plans to launch a dedicated New Zealand website using artificial intelligence agents to handle operations.

Temple & Webster (ASX:TPW) reported an 8% decline in revenue so far this financial year as the online furniture retailer shifted away from heavy discounting and lower-priced products.

The company maintained its forecast for full-year earnings of $33 million to $40 million, which represents anticipated growth of about 50% to 80% from the previous financial year.

"New Zealand is our first test of an AI-led market, where we manage both the technology and the commercial operations with an agentic team, supervised by humans," said Temple & Webster CEO Susie Sugden.

The business stated that it expects to return to revenue growth from late February while simultaneously planning to launch a dedicated New Zealand website using artificial intelligence agents to manage operations.

Following the announcement, the Temple & Webster share price was down to $4.08.

The online retailer has previously focused on expanding its private label offerings and scaling growth adjacencies to build market share in the Australian e-commerce sector.