Temple & Webster Group (ASX:TPW) implemented a margin optimization program in response to declining consumer confidence, and expects the move to boost profitability starting from the fourth quarter of fiscal 2026, according to a Wednesday filing with the Australian bourse.

Following the initiative, the company's April earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to around AU$2.5 million to mark "the most profitable April" in its history, per the filing.

The online furniture and homewares retailer expects fiscal 2026 revenue to rise up to 12% from the previous year to a range of AU$665 million to AU$675 million, and anticipates EBITDA jumping as much as 17% to between AU$20 million and AU$22 million.

Temple & Webster said its current margin run-rates would result in fiscal 2027 EBITDA nearly doubling to roughly AU$40 million even in a low-growth scenario.

"We remain firmly focused on growing our market share and reaching AU$1 billion in revenue by fiscal 2028," said CEO Mark Coulter.