Bedshed continues to be one of Australia’s most recognisable and trusted bedding and bedroom furniture brands. With a network of 42 stores – 36 of which are franchise operations – supported by a strong e-commerce platform, we remain committed to delivering quality, value, and exceptional service to our customers. We are also proud to have maintained our 5-star rating on the Australian Franchise Rating Scale™, a reflection of our strong franchise model and operational excellence 1.
Bedshed continues to be one of Australia’s most recognisable and trusted bedding and bedroom furniture brands. With a network of 42 stores – 36 of which are franchise operations – supported by a strong e-commerce platform, we remain committed to delivering quality, value, and exceptional service to our customers. We are also proud to have maintained our 5-star rating on the Australian Franchise Rating Scale™, a reflection of our strong franchise model and operational excellence 1.
Despite ongoing cost-of-living pressures and a retail environment marked by volatility and value-driven consumer behaviour, our network delivered business written sales (BWS) exceeding $161 million, a 7% increase on the prior year. This included record-breaking results during key promotional periods such as Black Friday, Boxing Day, and the months of November, December, and June.
Combined operations (franchisee and company-owned stores) generated revenue of $27.2 million, up from $23.1 million in FY24. Underlying EBIT for the group was $4.3 million, with an EBIT margin of 16%.
The company-owned store network achieved BWS of $22.7 million, up from $18.6 million in FY24. This included a full year of trading from our Castle Hill and Alexandria stores, which were acquired in late 2023 and early 2024 respectively and have delivered a significant uplift in BWS since joining the company-owned store portfolio. Like-for-like BWS across our Queensland and WA company stores remained steady at $15.7 million.
Our company-owned stores delivered improved gross margins, supported by strong inventory control, supply chain efficiency, and the successful introduction of new furniture ranges.
EBIT for FY25 increased to $1.5 million, compared to $1.2 million in FY24with EBIT margin steady at 7.2%.
Franchise operations also performed well, delivering a 7% increase in BWS and generating $6.1 million in revenue. This included a strong performance from the first full year of operations for our Jindalee and Toowoomba franchisees who saw combined like for like growth in BWS of 15%. The franchising business maintained a strong EBIT margin of 46%, with EBIT of $2.8 million, compared to 54% in prior year (and 47% in FY23). FY24 was impacted by a number of one off gains and our margin performance in FY25 was consistent with our expectations.
Our focus in FY26 will be on optimising the financial performance of our company-owned stores, driving network-wide BWS growth, further enhancing gross margins and continuing to enhance our omni-channel capabilities, building on the digital innovations introduced in FY24 to support customer engagement and conversion.
Bedshed remains fundamentally a franchised business, and we are progressing several strategic initiatives aimed at attracting high-quality franchisees and reducing the cost of entry into the Bedshed network.
I want to thank our dedicated team members and franchise partners for their hard work and commitment throughout the year. Their efforts have been instrumental in navigating a challenging environment and delivering strong results. Together, we are well-positioned to build on this momentum and continue Bedshed’s growth in the years ahead.
Gavin Culmsee, Bedshed General Manager
FRANdata Australia is the franchise industry’s number one source for objective information and analysis of Australian franchise systems. The outcome is a performance metric based on a star rating with 5 stars being the highest of ratings. This franchise star rating scale provides an independent and object tool to assist perspective franchisees, advisors and financial institutions make an independent evaluation of the franchise system.
In 2022 after months of interviews and information swapping, Bedshed achieved a 5 star rating making Bedshed the only franchise system in the bedding and home furnishing industry to achieve such a high rating.
