Online shopping

Redbubble sales plummet despite Covid boosting online shopping

Online marketplace Redbubble says its sales fell 16% in the third quarter, despite a high level of loyal customers who engaged with the brand for the first time during the Covid lockdowns.

In a business update, the company said third-quarter sales fell to $384 million, with gross profit down 22% to $144 million. Operating EBITDA was $4.5 million.

The group also saw “strong” overall customer retention in the quarter, with 47% of marketplace revenue coming from repeat purchases, the highest level since the company was founded.

In the update, the company said it would seek both organic and inorganic opportunities to boost its share price, which it says does not accurately reflect the company’s fundamentals and outlook.

“We intend to invest in both the artist and consumer experience to improve loyalty and retention and ensure long-term growth,” said Michael Ilczynski, CEO.

Last year, the company made a profit of $144 million, up 118%, reflecting strong consumer demand during the holiday season.

Ilczynski reiterated that the company’s revenues and profits were in line with expectations.