Online luxury retailer Cettire [ASX:CTT] saw Q1 FY23 sales revenue rise 72% on prior corresponding quarter to $66.1 million.
CTT shares spiked in early Tuesday trade but subsided by the afternoon.
Year-to-date, CTT shares are down 75%:
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Cettire’s financial trading update
Here are Cettire’s key Q1 FY23 highlights:
- Sales revenue of $66.1 million grew 72% year-on-year, (Q1 2022 $38.6 million).
- Gross revenue up 62% to $84.4 million.
- Adjusted EBITDA of $5.5 million on ‘delivered margin greater than 20%’.
- Active customers up 102% to 287,626.
- Gross revenue from repeat customers up from 48% to 56%.
- Sales revenue as a percentage of gross revenue sat at 78.3%.
Founder and CEO Dean Mintz commented on the company’s results today:
‘Cettire continues to demonstrate strong progress on its strategy to grow penetration of the large global personal luxury goods market. Our marketing initiatives and commercial offering are resonating with customers and we observed an acceleration in revenue and AOV growth into the quarter end, providing confidence in our Q2 outlook.
‘The demand environment remains healthy and our quarterly performance also serves to highlight the attractiveness and resilience (to economic challenges) of the global luxury consumer.
‘Q1 is traditionally a seasonal low point for the business. The strong profit result highlights the advantages of our proprietary software-driven automation and the uniqueness of our business model, benefiting from a highly flexible cost base, low overheads and minimal inventory exposure. Further, our profitability and supportive working capital dynamics translated into positive quarterly cash flow.’
While not divulging specifics, Cettire said its marketing spend fell to ‘low double-digits per cent of sales revenue’.
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