Articore Group, owner of online marketplaces Redbubble and TeePublic, continues to make progress in its turnaround efforts with improved sales trends and margin expansion.

The group’s marketplace revenue declined 1.1 per cent on a constant currency basis in Q3, moderating from a 2.7 per cent decrease in Q2 and a 9.3 per cent drop in Q1.

Management attributed the improvement to enhanced paid marketing effectiveness and continued refinement of promotional strategies.

Gross profit was up 1.6 per cent during the period, and gross profit margin rose from 46.7 per cent in the prior year to 51.9 per cent.

“Our third-quarter results show the progress of our turnaround,” said CEO and MD Vivek Kumar. “Over the past year, we have improved revenue trends, expanded to record gross margins, lowered our cost base, and delivered a significant EBIT turnaround.”

Frankly Wearing acquisition

Meanwhile, Articore has completed the acquisition of Frankly Wearing, an India-based print-on-demand creator marketplace, for US$900,000.

Frankly Wearing mirrors the three-sided marketplace model that underpins Redbubble and TeePublic: Creators upload designs and offer merchandise for sale, customers discover and buy, and third-party printers manufacture and ship each item directly to the customer. The business has been delivering consistent high double-digit growth and is cash flow positive. 

According to Articore, the deal accelerates its technology platform consolidation by establishing an India-based engineering capability, providing an entry point into the US$1 billion Indian print-on-demand market.

The acquisition also marks the first step towards a global capability centre intended to accelerate Articore’s technology development and reduce operating costs over time.