Surfstitch are riding high after needing to issue a note to correct their guidance from their prospects… In the right direction. They’re 37% up on earnings and on track to beat market expectations into 2016. Founders Lex Pederson and Justin Cameron have smoothly integrated operations from their two acquisitions (Swell and Surf Dome) after their IPO, including closing large warehouse space and aggregating operations in single locations. They have a list of to-do’s along the same lines unifying the site backends and marketing.
There’s some interesting numbers on the total market size in this – globally the action sports market is apparently worth US$16 billion. And while in other retail sectors, online shopping accounts for 10% – 15%, in action sports it’s only 1% or 2%. So there’s a lot of growth to be had in this space.
Read more on the happenings over at The SMH – Surfstitch rides online retail wave lifting earnings forecast to $7m.