Shares of Temple & Webster Group Ltd (TPW.AU) surged 5.02% in intraday trading on Wednesday, following the company's announcement of robust revenue growth and an improved earnings outlook. The Australian online furniture and homewares retailer's positive performance comes amid a challenging economic environment, signaling strong consumer demand for its products.

Temple & Webster reported an 18% increase in revenue for the period from January 1 to May 5, compared to the previous corresponding period. The company also revealed that it expects its fiscal year 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to be at the top end of its guidance range of 1% to 3%. This upbeat forecast has bolstered investor confidence in the company's growth trajectory.

Adding to the positive sentiment, Temple & Webster disclosed that it has benefited from US-China trade tensions, which have contributed to a significant reduction in inbound shipping rates. The company reported that these rates have fallen by approximately 20%, potentially boosting its profit margins. Moreover, the retailer has seen an acceleration in sales growth, with the rate increasing from 16% at the start of the period to 23% for March 1-May 5, further underscoring the strength of its business model in the current market conditions.