Temple & Webster Group Ltd's stock plummeted 5.22% during intraday trading on Thursday, extending the company's significant year-to-date decline.

The sharp drop follows a price target cut by Jefferies, which reduced its target on the online homeware retailer to A$8.95 from A$14.50, while maintaining a "buy" rating. The brokerage also slashed revenue estimates by 6%, 15%, and 18% for fiscal years 2026, 2027, and 2028, respectively.

Jefferies cited severe consumer stress with confidence at "historical lows," noting that management is essentially trying to "batten down the hatches" for a rough 12 months. The brokerage added that Temple & Webster's target of A$1 billion revenue in FY28 feels "increasingly aspirational" following the company's revenue forecast that missed consensus expectations.