- The leading global marketplaces for independent artists, Redbubble marked 132% uptick in July Marketplace Revenue.
- Revenue increase was majorly driven by $26 million contribution from the face masks.
- The stock marked a fresh 52 week high of $3.515 on ASX
- Through the online retailing, the artists have earned more than $100 million since its inception.
Redbubble Limited (ASX:RBL), the leading global marketplaces for independent artists, marked a fresh 52 week high of $3.515 on ASX, following an impressive trading update to the market. The stock settled the day’s trading session at $3.490, up ~17% on 7 August 2020.
Redbubble provides a platform for over 800,000 independent artist and designers across the planet with their millions of passionate fans. It was launched in 2006 in Melbourne, Australia. Their aim was straightforward to give the independent artists a new way to sell their creations. Redbubble calls itself a ‘brave and stylish new world of self-expression.’
Redbuddle owns two artist-product websites which include Redbubble.com and TeePublic.com.
The platform boasts of having unusual designs on useful products like a t-shirt with an evil cat or a phone case with a galloping doughnut. Artistic and designer product lovers can get any art they love on high-quality products.
July Marketplace Revenue Soars 132%
In the latest business update, Redbubble’s July marketplace revenue was reported to be $49 million, up 132%, equivalent to 133% on a constant currency basis. The numbers added to a strong final quarter of FY20, marking an outstanding year for the company.
Fourth-quarter marketplace revenue increased by 107% on PCP to $122 million. Moreover, overall FY2020 Marketplace revenue is expected to be $368 million, representing a considerable jump of 43%.
Notably, face masks had contributed about $26 million of Marketplace revenue. It launched variety of designer masks on its platform at the end of April. While, the platform sells everyday products such as apparel, stationery, housewares, bags, wall art and much more.
Redbubble said that the topline trend seen in the fourth quarter continued into FY2021, which propelled both of its Group’s marketplaces.
While the coronavirus pandemic has impacted the retail industry, it has also driven consumers to shop online. According to Redbubble, the increasing shift to online shopping resulted in its Year-on-Year growth throughout its core geographies and product categories.
According to the company’s previous statement, the artists have earned more than $100 million through sales across both Redbubble.com and TeePublic.com since its inception.
Online retailers, if not showing considerable growth, are going steady during the pandemic. As wearing masks is now a standard process amidst new normal of hygiene and social distancing, people are looking for trendy and high-quality options rather than wearing surgical medical masks.
Moreover, customers from around 200 countries shop on Redbubble’s online platform.
Redbubble works with artists and designers from North America, the United Kingdom, Europe, and Australia. To produce various kind of goods, the group has more than 32 production centres. These units provide more than 66 different types of products.
The Group is currently increasing its artist base and production centres, to enhance and improve local sourcing and reduce delivery times for the customer.
As per previous business update, Redbubble is focusing at headcount reductions and operating cost minimization, It also plans to calibrate its organisational structure to its strategy, to prioritise core operations:
- Artist acquisition, activation and retention,
- User acquisition and transaction optimization,
- Audience understanding and loyalty
In March this year, Redbubble announced the appointment of independent director Anne Ward as Chair. She replaced retiring Chair Richard Cawsey as a part of planned board renewal. Additionally, following Barry Newstead’s departure on 18 February 2020, Martin Hosking was appointed interim CEO for the company. Hosking will lead the team until a permanent CEO is found.
Notably, the stock has demonstrated impressive YTD return of over 170% on ASX. While, burgeoning online trends and demand for facemasks (quality and innovative ones) is expected to stay strong for a considerable period of time, the retail player continues to remain under the spotlight.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
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