Lockdowns and EOFY and announcements, oh my! Only some share prices have benefited from the current landscape (and it may not be who you think).
After snap lockdowns and more lingering restrictions, ASX-listed e-commerce companies have been on quite the rollercoaster the last few weeks.
In 90 days, Cettire’s share price has grown by more than 81%. Its recent downward trajectory was related in part to concerns about the long-term viability of its business model, spooking investors. It has since addressed these concerns (after a trading halt was announced following a 20%+ drop in its share price) and has managed to reclaim its share price and then some. Last week it also began a soft launch of its expansion into the children’s market. ‘It increases Cettire’s addressable market, whilst also providing scope to grow share of spend with existing customers and introduce new potential customers to Cettire’s online luxury goods platform,’ Cettire CEO Dean Mintz said. Despite this announcement, its share price dropped 1.5% over seven days.
Last week, we reported that lockdowns had provided a boost to Kogan and Redbubble, with their share prices experiencing a noticeable uplift. This appears to have been a short-term spike, with Kogan shares dropping by 15.5% to $10.81 and Redbubble dropping by 4.2% to $3.45 over the last 7 days. Temple & Webster has similarly failed to retain its strong lockdown performance, dropping 11.9% over the last week closing and at $9.70 on Tuesday.
This time last week, MyDeal seemed not to be a beneficiary of the lockdown tailwind (its share price dropping while Kogan and Redbubble and others rose in equal measure). This week, the tables have turned. Closing out at $0.71 on Tuesday, MyDeal’s share price has increased 24.6% over 7 days. Rewarding investor positivity, this morning, MyDeal announced it had delivered gross sales of $218.1 million for the 2021 financial year, up 111.1% on the prior year. Private label experienced ‘significant momentum’, with $8.8 million in gross sales for FY21. Active customers also experienced 83.1% growth year-on-year.
‘Our Private Label business has delivered a strong Gross Sales contribution and continues to grow. We remain focussed on building and augmenting our proprietary technology platform which is proving to be a core scalable asset of the business, and have invested in securing high calibre talent across all teams,’ said MyDeal CEO Sean Senvirtne.
Power Retail Australian Listed E-Comm Index, based on ASX reporting
Perhaps in anticipation of full year results, Adore Beauty shares increased 5.1% over 7 days, closing on Tuesday at $4.72. Another relative newbie to the ASX after listing in December 2020, Booktopia shares have grown by 11.6% over the last 90 days, closing at $2.77 on Tuesday.
It seems some (but not all) ASX-listed e-commerce companies have been buoyed by the imminent release of full year financials.
The ASX 200 has experienced little growth in the last 7 days (at just 0.5% as at close on Tuesday). MyDeal’s impressive share price growth has been countered by Kogan, Redbubble and Temple & Webster’s share price dips, meaning that all up, ASX-listed e-commerce shares went down by 7.8% over the same period. There’s a similar mismatch when we take a longer-term view. Over 90 days, the ASX 200 recorded 5.6% share price growth while ASX-listed e-commerce companies experienced a 8.2% drop.
As we enter reporting season, we expect a shake up in the e-comm space. What’s next? Only time (and EBITDA will tell).
Figures are current as at close of ASX on 7 July 2021. This is analysis only and not intended as investment advice.