The Redbubble Ltd (ASX: RBL) share price is on a tear this month, up 38% so far in August. Year-to-date, the Redbubble share price is up an eye-popping 231%.
To put that in perspective, the All Ordinaries Index (ASX: XAO) has gained 3.4% in August and is down 8.0% for the calendar year.
Although well-positioned as an online retailer, Redbubble’s share price was smashed during the COVID-19 driven panic selling, falling 61% from 21 February through 23 March.
Redbubble’s share price rebound since then has been nothing short of epic, with the share price up 684% since the March low. Investors with the nerves (and luck) to buy shares on 23 March would have seen a $1,000 investment balloon to $7,840 today. Minus any brokerage fees, of course.
At the current price of $3.61 per share, Redbubble has a market cap of $951 million.
What does Redbubble do?
Redbubble incorporates 2 global online market places, Redbubble.com and TeePublic.com. The company sells a wide range of products including apparel, stationery, housewares, bags, wall art and in recent months, more importantly face masks.
The company was founded in Melbourne in 2006 to help artists profit from their creations. Artists can upload their designs and products, and customers can search for and purchase these products which are produced to order and shipped around the world. Today, the company is connected to over 700,000 artists and designers across the planet
Redbubble began trading on the ASX in 2016.
Why is the Redbubble share price soaring?
In the age of pandemic-driven lockdowns, Redbubble finds itself in the enviable position of running an online retail platform. Atop that the company has been quick to transition into selling uniquely styled face masks as demand for masks has grown exponentially.
In a 7 August business update, the company reported its July marketplace revenue leapt 132%, to reach $49 million. It also announced its fourth quarter 2020 market place revenue increased 107%, to $122 million.
Redbubble noted that the shift to online shopping at seen growth in all its core products and markets. Additionally, face masks added $26 million to revenue from their launch in April through the end of July.
Redbubble releases its full FY20 results tomorrow. Investors appear to be forecasting good results, as the Redbubble share price is up more than 9% in late afternoon trading.
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