Redbubble sales fall despite Covid boosting online shopping
Online marketplace Redbubble says its sales fell by 16 per cent in the third quarter, despite a high level of returning customers who first engaged with the brand during Covid lockdowns.
In a trading update, the company said its third-quarter sales fell to $384 million with gross profit down by 22 per cent to $144 million. Operating EBITDA was $4.5 million.
The group has also registered ‘strong’ overall customer retention during the quarter with 47 per cent of marketplace revenue coming from repeat purchases – the highest level since the company was founded.
In the update, the company said it would look to both organic and non-organic opportunities to boost its share price, which it believes does not accurately reflect the fundamentals and prospects of the business.
“We intend to invest in both the artist and consumer experiences, to improve loyalty and retention and to ensure long-term growth,” said Michael Ilczynski, CEO.
Last year, the business hit $144 million in profit, up by 118 per cent, reflecting its strong consumer demand over the holiday period.
Ilczynski reiterated that the company’s revenue and profit performance are in line with expectations.