e-commere stocks have boomed during COVID-19 and the results show the ones have harnessed it successfully.
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The e-commerce boom is continuing unabated with small cap retailers AuMake (ASX:AU8), Harris Technology (ASX:HT8) and Temple & Webster (ASX:TPW) all reporting strong revenue and profit growth in FY20.
Many small caps in the retail sector were forced to close their doors and capitalise on their online channels to make up for lost revenue.
And e-commerce has proven to be a multi-billion boom for those doing it right.
AuMake saw its revenue jump by 35 per cent and gross profit by 232 per cent.
This growth comes despite the company’s revenue sources in ordinary times — Asian tourist traffic & daigou trade — being cut off by border closures.
AuMake’s shift online ensured money kept flowing in even with the restrictions. Chairman Keong Chan admitted COVID-19 had challenged the company’s very DNA, but that the company had responded accordingly.
“We have deeply considered the ‘big picture’ and are firmly focused on growth in the context of a vastly different world,” he said.
Shares are down overall in 2020 but they received a boost this morning on the news.
Meanwhile, online only play Harris Technology booked $3.4m in revenue in July.
The company was trading at 0.9c back in January but has skyrocketed ever since it began selling hygiene products, including masks, back in April and witnessed heavy demand.
Harris Technology made further gains when masks were made mandatory in Melbourne in July.
CEO Garrison Huang said the company had started this financial year just as strong as it finished the last one.
“Our team has worked very hard to ensure the supply of all the necessary products during this tough time with the COVID crisis,” he said.
The company reached an intraday high of 17.5c this morning.
Redecorating the house has become a popular activity during lockdown and this has benefited Australia’s largest online furniture store Temple & Webster.
The company’s share price has more than tripled in 2020.
Temple & Webster reported $176.3m in revenue and a $13.9m profit after tax for the last financial year.
Full fiscal year revenues were up 76 per cent year over year. During the June quarter, at the peak of restrictions, revenues rocketed 130 per cent compared to the same time last year.
The company also reported a strong start to this year, seeing year on year revenue growth across July and August. In both months this figure surged over 160 per cent compared to the prior corresponding period.
Temple & Webster CEO Mark Coulter was particularly proud that his company crossed 500,000 active customers.
“Our strategy of being a category specialist, with a clear customer offering built around the biggest and best range of furniture and homewares in the country, combined with the most inspirational content and services and a great delivery experience and customer service is working,” he said.
Temple & Webster shares rose another 14 per cent this morning.
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