Breville books record sales as it dodges Trump’s tariffs, Temple & Webster smashed amid profit miss
Home appliances maker Breville says its ‘mitigation efforts’ against Donald Trump’s punishing tariffs have helped it deliver a double-digit revenue growth in the half-year.
Home appliances maker Breville says its “mitigation efforts” against Donald Trump’s punishing tariffs have helped it deliver double-digit revenue growth in the half-year.
Revenue hit $1.1 billion compared with the prior corresponding period’s $997.5 million, in what the group said was a new record and had doubled over the past six years.
A manufacturer of coffee machines, air fryers and other kitchen goods, Breville on Thursday said the result was driven by new product developments, newer geographies, direct markets and resilient premium consumer demand.
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By continuing you agree to our Terms and Privacy Policy.Net profit grew 0.7 per cent to $98.2m in the half-year ended December, though fell slightly short of expectations.
Breville said the “incrementally challenging” backdrop of US tariffs was “managed through diversification, volume growth in core, tail pricing, distribution mix and strength” in other regions.
Earnings also rose 0.7 per cent to $145.8m, marginally exceeding consensus estimates.
The Solomon Lew-backed retailer was forced to diversify some of its manufacturing away from China — which is facing a 30 per cent US tariff — to Mexico and South-East Asia in a bid to bypass Mr Trump’s punishing tariffs.
On Thursday, chief executive Jim Clayton said 80 per cent of US-generated gross profit was manufactured outside China at the end of December.
“The tariff backdrop in the US made the half incrementally challenging, but the results speak for themselves,” he said.
The group will pay an interim dividend of 19¢ a share on March 27, up 5.6 per cent.
Breville expects full-year earnings to be a slight increase over 2025. Its shares were down 1.3 per cent to $32.48 in early trade on Thursday.
Meanwhile, shares in online furniture retailer Temple & Webster were down 24 per cent to $8.58 amid a profit miss.
According to Citi, Temple & Webster’s half-year profit of $5.8m was a 32 per cent miss on consensus expectations.
It took the shine off the near-20 per cent jump in revenue to $375.9m.
“We continue to execute on our strategy to reach $1 billion in revenue by FY28 and cement our leadership in the online retail market for the home,” chief executive Mark Coulter said.
RBC Capital Markets analyst Wei-Weng Chen said the retailer’s trading update looked OK. Trading at the start of the second half is up 20 per cent, in-line with expectations.
