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RBL - REDBUBBLE LIMITED


nipper
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Redbubble Limited (RBL) listed on the ASX in early 2016 and now has a market cap over $1billion. The company operates global online marketplace connecting independent artists with customers:

  • ... a global community of independent artists and designers looking to showcase and sell their work;
  • ... consumers seeking distinctive designs and creative works across a range of quality products including apparel, accessories, homewares, and other lifestyle categories; and
  • ... third party fulfillers utilising leading edge capabilities to produce the products after they have been ordered by the Customer in a print on demand model and then arranging for their delivery to the Customer.

These marketplaces facilitate the sale and purchase of art and designs on a range of products between independent creatives and consumers. The products are produced and shipped by third party service providers. Every product on the various RB Group marketplaces is printed on demand (i.e. made one at a time). The product does not exist unless and until the customer orders it, which means less waste.

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Matthew Kidman (Livewire Markets ) : Is it a bubble? Or is it for real? Redbubble, it has designs for everything you want: cups, Tshirts, school cases. James, we will go with you. Buy, hold or sell?

 

James Gerrish (Market Matters ): I think it is a buy here, Matthew. The marketplace seems to be working. So, it is working because it is getting more customers on it and that is attracting more merchants, which gives more variety and that is leading to more multiple purchases. So, after a tough FY21, I think FY22 looks better. So, it is a buy.

 

Matthew Kidman (Livewire Markets ) : Chris, it has been a volatile relationship between Redbubble and the market. They are in love. Then they are out of love. They are in love, out of love. Guess what? They have fallen back in love. Buy, hold or sell?

 

Chris Stott (1851 Capital ) : Sell. 79 times PE is too expensive for us. We think there is better value elsewhere. They missed their earnings more recently and the guidance underwhelmed to an extent being a reinvestment year on the cost side of things. So, it is a sell for us.

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  • 1 month later...

Redbubble suffered a 34 per cent dip in gross profit in the September quarter, as a collapse in sales of masks weighed on the business.Gross transaction volume slumped by a fifth in the quarter to $142 million compared to the same period last year, and earnings before interest, depreciation and amortisation fell 85 per cent to $3.9 million.

 

The drop was partly driven by a collapse in mask sales from $29 million in the third quarter of the 2020 to just $6 million in the same period this year.

 

The company reiterated its August guidance and expects financial year 2022 revenue to be slightly above the 2021 financial year that ended in June.

 

The business remains confident and excited about the medium to longer term opportunity to grow strongly its online marketplaces for consumers, the company said.

 

.... that is not a growth story !

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