HONG KONG — Shares of Hypebeast Ltd., which produces the sneakerhead bible of the same name, leapt 45.3 percent on Monday, following the release of the company’s third-quarter results, bringing its stock price up 117 percent from a year ago.
Traded on Hong Kong’s GEM board, which caters to small-medium enterprises, Hypebeast shares closed at 39 Hong Kong cents a share on the back of strong top-line growth. For the nine months ended Dec. 31, the group saw revenue reach 291 million Hong Kong dollars, or $37.2 million, rising 89 percent year-over-year. Revenue for the quarter was 147.7 million Hong Kong dollars, or more than two-fold the same time a year ago.
Earnings before interest and taxes ratio improved to 14.4 percent from 12.2 percent. Profit for the nine-month period was 42.1 million Hong Kong dollars, or $5.38 million, up 166 percent.
Seventy percent of its revenue was generated by its media business — which since early 2017 includes its creative agency services arm Hypemaker alongside its four editorial titles, while the remainder by its online store which sells third-party branded clothing, shoes and accessories.
Media drove most of its revenue growth, surging 98 percent over the previous year. E-commerce grew 68 percent as the business pared down its range of products on offer. It counted 5,700 stockkeeping units from 380 brands at the end of last year, trimming approximately 500 products and 42 brands from a year ago.
Founded by Kevin Ma in 2005, Hypebeast Ltd. was listed in 2016 and has grown to include editorial titles Hypebae, Hypekids and Popbee, alongside its flagship brand Hypebeast which produces content in five languages.
The group incorporated in the U.K. last May while the group’s U.S. subsidiary, Hypebeast Inc. formed a joint-venture this month called The Berrics Company, to focus on skateboarding related digital content, advertising and offline events.
At time of writing, Hypebeast counted over 5 million followers on Instagram on its main account. This month it debuted a weekly podcast series called the Business of Hype, hosted by Jeff Staple of New York-based visual communications agency Staple Design, which covers “streetwear entrepreneurs and the business decisions, trials and tribulations that got them where they are today.”