The Redbubble (ASX: RBL) share price is up more than 14% after announcing a trading update to the market for July 2020.
Redbubble is the owner of two artist-product websites including Redbubble.com and TeePublic.com which is used by over 1 million artists.
Redbubble’s strong update
Redbubble gave a business update today showing that July’s marketplace revenue was $49 million, up 132%. That added to a strong final quarter of FY20 as well a good year to the company.
Fourth quarter marketplace revenue was up $122 million, up 107% compared to the prior corresponding period. Total FY20 marketplace revenue was $368 million, an increase of 43%.
Redbubble said that the increasing shift to online shopping resulted in year on year growth across all of its core geographies and product categories. Face masks have contributed $26 million of marketplace revenue from the launch at the end of April until 31 July.
The company expects to release its results on 21 August 2020.
Redbubble has really turned things around. Online retailer businesses are doing very well. Redbubble could continue to be one to watch for the long term. However, its share price is now much higher than it was pre-COVID, so I’d only start with a small purchase due to the strength of the increase.
I’d be more willing to buy larger positions in other ASX growth shares like Bubs Australia Ltd (ASX: BUB) or Pushpay Holdings Ltd (ASX: PPH). I’m not sure if the elevated demand will last for Redbubble over the next few months, though its growth could continue for the long term.