Over the next couple of days as the majority of ASX companies release their quarterlies, ASX ecommerce stocks will be one sector to watch because their financials will reflect the impacts of the Sydney, Melbourne and Canberra lockdowns.
Many ecommerce companies saw substantial growth in 2020 in the first round of lockdowns as their customers adjusted to the pandemic and associated restrictions.
But many of these stocks retreated in the first half of 2021.
Even as sales continued well above what they were pre-COVID, investors were skeptical as to if the run would continue – at least at the same pace.
While the jury is out as to whether sales will stay this high forever, the 2021 lockdowns will undoubtably give sales another boost from what they were in the quarter before.
And if early indications are any guide, it appears this time ASX ecommerce stocks might be rewarded by investors but some are particularly worthy to watch this reporting season.
ASX ecommerce stocks with results out already
One company to have already released its results was homewares firm Adairs (ASX:ADH). While it is down 25% from its highs in January this year, it got a 5% share price bump from its quarterly.
While on a group basis its sales were down 8.5% in the first 16 weeks, its online sales grew by 15% and were 173% up from the first 16 weeks of FY20.
Although the company estimated a loss of $28-$32 million from mandated store closures, the company said this was captured in its online channel.
Another was MyDeal (ASX:MYD) which was another homeware outlet that saw a share price gain upon its quarterly – rising 15% across the two days after its release.
As a purely online play, its headline figures grew substantially. Its gross sales came in at $69.5 million, up 49% quarter on quarter, and its active customers were 929,461.
Rounding out the early releasers was all-round ecommerce outlet Kogan (ASX:KGN). In the September quarter it grew its sales 23.2% to $330.5 million and its active customers to 3.35 million.
Adairs (ASX:ADH), MyDeal (ASX:MYD) and Kogan (ASX:KGN) share price chart
ASX ecommerce stocks to watch
So which other ASX ecommerce stocks might be seeing a “second wave” of online sales growth?
One of the most obvious is fellow furniture outlet Nick Scali (ASX:NCK).
Across the entire FY21, it notched up a 100% gain in its profit from $42.1 million to $84.2 million.
The company also upped its revenues by 42.1% to $373 million from $262.5 million.
Beyond furniture, there are a handful of other niche ASX ecommerce stocks that could see a windfall.
With hairdressers shut, people needing haircuts had little choice but to go to the Shaver Shop (ASX:SSG).
People wanting to spice up their home in other ways also had the option of appliance maker Breville (ASX:BRG) and lighting company Beacon Lighting (ASX:BLX).
One company whose growth has not been impacted by lockdowns is Baby Bunting (ASX:BBN).
The pandemic evidently hasn’t stopped people having babies altogether and where there are babies, there are parents needing to care for them.
This company’s stores have remained open, although it has had an online offering too.
In FY21 it made $468.4 million in sales, up 15.6% from FY20 and a statutory net profit after tax of $17.5 million, up 76% from FY20 and it didn’t even need JobKeeper or rent relief.