Redbubble is an online marketplace where artists can sell their artwork on t-shirts, cushions, custom facemasks...you name it.
Background: Redbubble is an online marketplace where artists can sell their artwork. But not just on a canvas, we're talkin' art on t-shirts, cushions, custom facemasks...you name it.
What happened: Between March 2020 and January 2021, Redbubble shares soared a whopping 1,300%. But after that? Things started going south.
What else: Redbubble just provided a trading update. Transactions are down. Profits are down. And profit margins have been crunched thanks to strong competition and poor loyalty. That's gotta hurt!
💡A profit margin indicates how much profit has been made on each dollar of sale within a business. It is often as an indicator of a company's financial health and growth potential.
💡When it comes to profit margin, there are a few things at play.
Quantitative factors
Qualitative factors:
💡When competition is high, businesses are forced to drive down their prices, or increase their advertising spend. And in the words of T-Swizzle, Redbubble knows this All Too Well.
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