Peekaboo Beans Inc. (CSE: BEAN) recently announced its Q4 FY2020 sales result which included a 21% increase over the same period last year, and an increase of 229% from Q4 2019.
Peekaboo Beans offer an online shopping experience in clothing fashion, for both toddlers and children. Peekaboo is focused on environmentally responsible clothes that are intentionally designed to inspire play.
Peekaboo Beans has a new digital marketing campaign that is driving website page views and sales
The key to any business is getting customers to view your products. In this case, Peekaboo Beans may have just found the magic recipe. Take a look at some recent stats below:
- peekaboobeans.com had 105,885 visitors in Q4, showing an increase of 84% over Q4 2019
- Total orders of 6,746 were up 36% over Q4 F2019.
- Returning customer rate was 38%. This is higher than the average returning customer rate of 20-25% industry bench
- The Company had 125% growth in first time customers; accounting for 2083 new customers for the quarter up from 925.
Record website traffic drives record sales
As a result of the outstanding increase in website traffic, orders increased, and so did sales. Record sales mean record revenues.
CEO Traci Costa stated:
“We are excited about the steady growth in sales, which we believe is driven, in part, by our recent investment in digital ad spend……We are seeing a return of 10:1 on our ad spend, which is far greater than the industry average of 4:1. After trying various sales models in the past, we believe we have finally found the optimal model to drive sales and take our unique children’s clothing brand to the next level.”
Peekaboo’s omni-channel approach to reaching customers is working
Peekaboo Beans is embracing the new online sales economy. This means creating an omni-channel strategy where ‘all bases are covered’ to interact with customers seamlessly and in a connected way.
Examples include having bricks and mortar store, a website, Facebook, Instagram, Amazon, other affiliate sites, using social influencers, and so on. Customers can interact with Peekaboo easily no matter which medium they choose. Also by having multiple touchpoints, Peekaboo is able to reach more potential customers. This also helps build the brand name and website traffic, and ultimately more sales.
Returning business leads to recurring revenues
Peekaboo’s returning business of 38% is a sign that customers are coming back. Naturally even higher numbers would be better, but given the intense competition of online retail, Peekaboo is performing above the average 20-25% benchmark.
Peekaboo’s US expansion has the potential to substantially grow revenues
Sales from the United States were up 5% for the first quarter. In comparison, in 2018 1.3% of total orders were in USD and in 2019 1.45 % of total orders were in USD. As the word spreads in the US the potential is enormous for Peekaboo to grow sales in such a huge market.
Insiders are buying shares in Peekaboo
On January 21 it was reported that “Peekaboo Beans insiders increase equity position in the Company by acquiring 769,000 common shares on the open market at an average price of 0.04 per share.”
Insider buying is always a good sign. Insiders owning a reasonable percentage equity stake in the Company is also favorable. For Peekaboo beans CEO Traci Costa owns about 4% of the Company and Darrell Kopke owns about 3%.
Peekaboo clothes are all about play, passion, and possibilities for children to feel good
Niche retail businesses are not easy to create; however, once they get a certain amount of momentum and brand recognition they can be very profitable. There are so many examples of these including: Nike, Adidas, Under Armour, and Lululemon to name just a few. Peekaboo Beans is still in the early stages but if the recent impressive growth rates (helped by their omni-channel marketing) can continue then we will be hearing a lot more about Peekaboo in the future.