Temple and Webster, the online furniture company, reported an upgraded margin guidance, and actuals ahead of estimates, for the past half.

That’s good.

However sales commentary didn’t seem especially compelling.

Without graphs, I’ve always found it quite hard to know what to picture with such commentary.

It is more or less the opposite of what JBH had to say, which makes sense, given when one closed the other opened, loosely speaking.

Whenever you can’t be sure, I find it generally safe to assume it’s not good.

TPW has been a great, well executed idea, but margins are razor thin, the online “return to trend” means exponential growth shouldn’t be “baked in”, hence low P/Sales metrics strike us as reasonable.

Given it is currently trading at 1x sales, and has the above ambiguous sales comments, and our prior negative view on the cycle for retail, we are happy to stay away.

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