Another solely online business in custom goods marketplace Redbubble has had a good pandemic (like peers Kogan and Temple & Webster which have thrived during and after the lockdowns).
Redbubble told the ASX yesterday that it made a very strong start to the 2021 financial year, with the retailer revealing both revenue and profit doubled in the three months to the end of September.
Revenue grew 116% to $147.5 million and gross profit soared 149% to $64.5 million. Earnings before interest and taxes was $22.1 million for the quarter.
The company has also been doing roaring trade in its line of custom reusable masks, which it launched in April. CEO Martin Hosking said the business would now look to capitalise on the lead it has gained in the market through further investments in customer acquisition.
“The strategic priority for the group now is to ensure we extend the market leadership we have established. We intend to invest in the customer experience to improve loyalty and retention and ensure long-term higher levels of growth,” he said in yesterday’s update.
“The company has the resources to undertake the anticipated investments and the margin structure to ensure it can do so while remaining profitable”.
The company said that at September 30 it had a cash balance of more than $85 million.
The shares rose jumped more than 11% to $5.35 on Thursday, while the wider ASX was up 0.5%.