BikeExchange's previously gentle ride is looking bumpy after the release of its Q4 results. Who's tracking well and who is on a steep decline?
The ASX 200 is slightly outperforming ASX-listed e-commerce companies, tracking at 5.8% growth and 4.6% growth over 90 days, respectively.
It’s the strong gains led by Temple & Webster (17% growth in the last three months) and Cettire (44.2% share price growth in 90 days) that have lifted the average, with Booktopia (3.3%) and Adore (7.8%) also boosting the e-com industry.
Without these strong performers, the ASX-listed E-Commerce Index would be falling behind the ASX 200. The investor response to MyDeal’s Q4 FY21 Quarterly results last week was lacklustre, to say the least, shedding 40.4% over 90 days.
July saw Adore trading above $5 for the first time since April, the share price showing market confidence ahead of full-year results. It’s now up 9.9% over 30 days and tracking well, especially in comparison to many of its online retail competitors.
Source: Power Retail Australian Listed E-Comm Index, based on ASX reporting
Booktopia has continued with its slow but steady growth, up 3.3% over the last three months. BikeExchange had been on a similar track to Booktopia, remaining fairly steady, though this seems to have shifted since the release of its quarterly business update, dropping from $0.22 to $0.18 in the last week (and shedding 26.5% over 90 days). BikeExchange reported that revenue is up 129% on pcp and that traffic conversion rates improved to 0.15% (from 0.12%) in Q4. So what spooked investors? Traffic was consistent on Q3 FY21 but down 32% on the higher COVID impacted comparative period in FY20. Seeing the dissipation of the pandemic tailwind may have impacted BikeExchange’s relatively smooth ride until this point.
“Our business continues to experience strong growth, demonstrated by positive increases in key metrics both on a quarterly and annual basis. In addition to underlying organic growth, the business is benefiting from the targeted shift to e-commerce and greater transactional volumes on the platform,” said BikeExchange Global CEO Mark Watkin.
“Enquiry lead volumes, totalling over $1.6 billion in value at 30 June, continue to grow and present significant e-commerce conversion opportunities. We are already having success in this area demonstrated by the strong performance of our e-commerce division, which saw 60% growth in transactions, increasing Average Order Value (AOV) by 46%,” Watkin explained.
A more detailed update on outlook and strategy will be provided with the release of the FY21 Annual Report in August 2021. It remains to be seen whether expected growth rates for FY22 will be enough to ease the recent uncertainty.
In contrast, Temple & Webster seems to have benefitted from the current climate, closing out at $12.57 on Tuesday and experiencing a 28% bump over 30 days.
We expect further movement as more results are released and the market reacts to the changing pandemic landscape.
Figures are current as at close of ASX on 3 August 2021. This is analysis only and not intended as investment advice.
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