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Australia’s Temple & Webster Stocks Fall 64% as Consumer Spending Slows
Temple & Webster shares have struggled heavily in 2026 as rising interest rates, inflation, and living costs pressured consumer spending across Australia. The online furniture and homewares retailer has lost 64% of its value this year, including a 30% decline during the past month alone. Despite the sharp fall, Bell Potter believes the ASX consumer discretionary stock could rebound by more than 40% from current levels. The broker pointed to new pricing strategies, marketing initiatives, strong cash reserves, and long-term e-commerce growth opportunities as reasons for optimism, even as economic pressure continues affecting discretionary retail spending.
Temple & Webster Group shares fell sharply due to weakness in consumer spending. Yet the plunge did not depress Bell Potter’s hopes for Kogan, which it believes could recover after devising new growth plans, a change to its pricing strategy and long-term fundamentals.
Key Highlights
- Temple & Webster down 64%
- Bell Potter rates it a buy and believes it can rise 41% from current levels
- Higher borrowing costs hurt consumer and business spending
- New pricing and marketing strategies were implemented
Temple & Webster shares tumble as consumer spending comes out weak
Temple & Webster Group (ASX: TPW) has seen its value decline by 64% since January and a huge 30% last month, making it one of the biggest losers on the consumer discretionary index amongst media-friendly declines. Despite the online furniture and homewares retailer facing a high interest rate environment, inflation pressures and increasing living costs to household discretionary outlays on non-discretionary essentials. Pressure on household spending has made investors more wary regarding consumer-facing businesses.
Bell Potter downgrades to FY26 guidance: Company on the road to recovery
Temple & Webster updated its FY26 guidance to a revenue of $665 million to $675 million EBITDA of $20 million and 22,000. Although these figures fell short of Bell Potter’s expectations, the broker said the company was in the process of resetting its business through pricing and marketing programs launched during the March to May period. Bell Potter thinks the retailer now has a better line of sight to deliver roughly $40 million in EBITDA in FY27 without too much reliance on revenue growth.
Market Risks Persist, But Long-Term Growth Outlook Remains Intact For The Brokers
In the case of Temple & Webster, Bell Potter cut its price target from $13 to $7 and while that is a reduction it still offers approximately 41% upside at current trading levels. The broker acknowledged the company’s strong cash position, strengths in AI and data, scale advantages, and growing e-commerce presence, all of which support long-term growth for the stock.
Macquarie Group is also very bullish, having raised its $11.80 target price to $13.70, which translates into an even bigger upside move on a valuation basis for Ekinox/Ignition's shares. But not all analysts are convinced, with DP Wealth Advisory warning that higher oil prices and interest rates could further undermine discretionary spending.
FAQs
- What is affecting Temple & Webster shares?
Higher rates and living costs have hit discretionary spending.
- What upside does Bell Potter foresee?
Bell Potter contends the share could increase approximately 41% from current levels.
- What did the company guide for FY26?
Revenue forecast of $665 million to $675 million for Temple & Webster.
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