Motley Fool Money Stock of the Week: Temple & Webster
May 19, 2021
Kevin Gandiya, Director of Research at Motley Fool Australia, outlines Temple & Webster, an online furniture and homewares marketplace. He highlights rapid e-commerce adoption for furniture and the company’s market share gains. Discussion covers sustainability of recent growth, risks like competition and execution, and why he recommends a Buy.
AI Snips
Chapters
Transcript
Episode notes
Temple & Webster Is The Online Furniture Market Leader
- Temple & Webster is a leading Australian online furniture retailer that aggregates a large catalogue and delivers to homes.
- The company bought Matt Blatt and Wayfair Australia to scale its offering and mirror Wayfair's US model.
Ecommerce Penetration Is Rapidly Growing In Furniture
- Online penetration for furniture is rising quickly; Australia moved from ~5% to ~9% while the US reached ~21%.
- Kevin says Temple & Webster is growing faster than the industry, implying it's taking market share.
Buy For Long Term Growth Not Short Term Momentum
- View Temple & Webster as a long-term growth investment rather than a short-term momentum trade.
- Kevin highlights profitability plus sustained growth as reasons long-term investors should consider buying now while sentiment has cooled.