Redbubble rides ecommerce boom as sales soar again
Redbubble (ASX:RBL) has continued its strong run after posting another strong quarterly sales result, with revenue of $147.5m.
The company said that figure amounted to year-on-year online sales growth of 116 per cent.
And for investors, the result was further evidence that Redbubble continues to ride the ecommerce boom in the wake of COVID-19.
Redbubble shares rose by another 15 per cent at the opening bell.
At around $5.50, the stock has now climbed more than 1,000 per cent from its March lows of less than 50c.
The Q1 FY21 result marked an increase of around 20 per cent from the previous quarter, when Redbubble posted sales of $122m.
RedBubble’s platform provides two online marketplaces — RedBubble and TeePublic — to facilitate merchandise sales for independent artists.
Examples of products sold on the site include T-shirts and other clothing items with unique artist prints.
The top line figure flowed through to gross profit of $64.5m and quarterly earnings before interest and tax of $22.1m.
Redbubble CEO Martin Hosking said the main priority now is to convert RBL’s strong sales growth into retention — for both artists and customers.
He added that extending the platform’s market leadership in ecommerce channels will require funnelling earnings back into investment.
“The company has the resources to undertake the anticipated investments and the margin structure to ensure it can do so while remaining profitable,” Hosking said.