Online luxury fashion sales group Cettire [ASX:CTT] has posted its performance in a trading update that covers the last four months to 30 April.
The luxury brands retailer declared it had reached $141.3 million in sales revenue, an increase of 122% on the same time frame the previous year.
Early on Tuesday, shares for CTT were rising by more than 4%, worth $194 apiece at the time of writing.
In the past 12 months, the luxury stock has amassed a vast 192% increase in stock value:
Source: TradingView
Cettire’s revenue surges in Q3 with healthy earnings
Cettire’s gross revenue had increased by 101% with $131.8 million gained in the third quarter — a significant difference from the $70.8 million posted in Q3 FY22.
The luxury brands retailer said that the average order value it received was around $744 for each customer. This is up from an average of $688 per order at the same time last year, representing 8% in growth.
Cettire said it had experienced continuing strength in profitability trends that it had first spied on towards the end of FY22 and in its H1 FY23 result reports.
The group pointed out that historically Q3 is thought of as generally a ‘seasonal low point’ for sales.
According to Cettire, adjusted EBITDA (earnings before taxes, amortisation, and depreciation) — unaudited for the four months ending on April 30 was at least $7.0 million. This was also on a delivered margin of greater than 20%.
The group reported marketing investment (including brand investment) was in the high single-digits as a percentage of sales revenue.
April’s monthly sales revenue had increased around 160% year-on-year. The group said is a representation of a continued acceleration of the growth that had been achieved in the third quarter.
Average customers at the quarter end were 350,653, versus 246,880 as at the prior corresponding quarter end.
Commenting on the company’s performance, Cettire’s Founder and CEO, Dean Mintz, said:
‘Cettire continues to demonstrate exceptional operating momentum, with revenue growing at a faster rate than in H1 FY23.
‘It is particularly pleasing to see the Company’s localisation strategy is delivering results, with revenue from its emerging markets outpacing the Group.
‘The revenue growth acceleration in April was underpinned by further growth in repeat customer revenue and an acceleration in growth in active customers.
‘Cettire is rapidly growing share in a large and growing global market, which benefits from the structural shift to online.’
The company’s net cash balance was approximately $39 million at 30 April, reflecting the settlement of trade payables from the ‘seasonally larger’ December quarter.
Cettire expressed that it can foresee monthly growth rates maintaining this kind of momentum throughout the rest of FY2023.
At its FY22 results, the company confirmed that it would be operated to maximise profitable revenue growth, whilst also self-funding.
Therefore, Cettire’s financial strategy remains unchanged.
Cettire will release its full-year results for the 12 months ending 30 June 2023, in August.
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For Money Morning