Redbubble share price on watch after COVID face mask demand drives sales surge

The Redbubble Ltd (ASX:RBL) share price will be on watch on Friday after the release of a strong business update this morning…

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Family wearing protective face masks while visiting shopping centre

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The Redbubble Ltd (ASX: RBL) share price has been a very strong performer over the last few months.

After an incredibly underwhelming performance during the first half of FY 2020, the pandemic has shifted spending online and given the ecommerce company a much-needed boost.

So much so, the Redbubble share price hit a record high of $3.07 on Thursday.

The good news for shareholders is that its shares could continue this positive form on Friday after the release of a positive business update this morning.

What did Redbubble announce?

According to the release, the leading global marketplace operator for independent artists recorded marketplace revenue of $122 million during the fourth quarter of FY 2020. This represents a 107% (97% in constant currency) increase on the prior corresponding period.

This strong finish to the financial year led to Redbubble recording full year marketplace revenue of $368 million. This was a 43% (36% in constant currency) increase on FY 2019’s marketplace revenue.

Pleasingly, management revealed that its strong sales growth has continued during the early stages of FY 2021.

Redbubble’s marketplace revenue was $49 million in July, up a massive 132% (133% in constant currency) on the prior corresponding period.

Management advised that a good portion of this growth has been driven by a spike in demand for face masks on its platform during the pandemic. 

It commented: “Topline trends seen in 4Q continued into FY2021, propelling both of RB Group’s marketplaces. The increasing shift to online shopping resulted in YoY growth across all core geographies and product categories. Face masks have contributed $26 million of Marketplace Revenue from launch at the end of April until 31 July.”

No earnings update for FY 2020 was provided with this announcement. This will be released to the market with its full set of financial results on 21 August 2020.

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