Earnings also skyrocketed,jumping over 500 per cent to $8 million for the half. Shares in the e-commerce player rose as much as 15 per cent,before closing up 9 per cent at $2.90,as investors responded positively to the news.
Booktopia listed on the ASX in early December,following a swathe of other online retailers hitting the boards late last year such as Adore Beauty,Universal Store and MyDeal.
At the time,the company forecast 2021 revenue of $204.5 million and earnings of $9.4 million,however,Wednesday’s trading update blew expectations out of the water,with Shaw and Partners’ Jonathon Higgins saying the business’ margins were currently tracking two years ahead of his forecasts.
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“We remain bullish on Booktopia,with the latest set of numbers showing its ability to perform in an Australian market which has experienced a material rebound from Covid lockdowns,” he said.
“Overall the results are materially ahead of Shaw and indicative of a deeper market and better margins than the market is expecting.”
Mr Higgins said the better-than-expected result was likely due to improved cost benefits arising from the retailer’s ongoing $20 million automation and expansion of its distribution centre,along with a broader trend towards online shopping in wake of the COVID-19 pandemic.