Another outstanding result for TPW. Some takeaways for me ..906k...

Another outstanding result for TPW. Some takeaways for me ..

• 906k active customers (that's nearly 1 in 8 households purchasing from T&W within the last 12 months!)
• 74% of sales are from drop-shipping (no inventory risk). No change in Inventory on Hand YoY whilst private label has increased (indicating higher stock turn of private label)
• It's TV advertising is working and they are STILL generating a low customer acquisition cost.
• Growing average order size and high repeat orders (= growing lifetime value)
• An average time to dispatch of just 1.7 days! This is an outstanding metric, even outside of the pandemic (given supply issues so many retailers are struggling with)
• TPW are growing faster than all their competitors. H1FY22 YoY was 45% (vs KGN @ 9%, ADH Mocka @ 23%, MYD @ 20%). [NCK online @ 89% although much of this likely to be cannibalisation of its stores closed during covid. Overall NCK 5% H1FY22 YoY]
• When looking at online penetration as a % of total, US penetration is 3x higher than AU. AU will achieve the same penetration in time (3 years, 5 years??). Even if TPW maintains its market share, this implies that it will be 3x larger in the next 3 to 5 years. Lots of upside opportunity.

To those concerned about low EBITDA $, TPW's strategy is to invest now to win the market (which they are successfully doing). Similar strategies have been adopted by many other online businesses such as Amazon and Wayfair (US equivalent of TPW). Margin expansion will come with higher market share. Unlike many other online retailers, TPW is profitable and has over $100m in cash on its balance sheet (and no debt).

To me, TPW is positioning itself strongly to be the long term winner in the Furniture and Homewares category. Keep up the great work TPW!