Cettire climbs on sales and market share
The Young Rich Lister behind luxury online platform Cettire says the company is growing its share in the large and expanding prestige market, outpacing the rising cost of living.
Higher rates have not hurt big spenders, with Cettire sales up strongly over the first four months of calendar 2023. The stock dropped 4.3 per cent to $1.78.
Cettire founder Dean Mintz made the FInancial Review Young Rich List in 2021. AFR
The company is seeking a greater slice of the global prestige goods market valued at $410 billion. Cettire said third-quarter sales more than doubled to $101.5 million and the average order value increased to $744 from $688 in the March quarter of 2022.
Dean Mintz, who is also Cettire’s chief executive, said the online retailer continued to demonstrate “exceptional operating momentum”, with revenue growing at a faster rate in the past four months than in the first half of the financial year.
“It is particularly pleasing to see the company’s localisation strategy is delivering results, with revenue from its emerging markets outpacing the group,” he said.
“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.”
Mr Mintz said the group’s financial strategy, which remains unchanged, was to maximise profitable revenue growth, while being self-funding.
The company, which sells Gucci bags, Dolce & Gabbana jeans and Jimmy Choo shoes, generates most sales from the US, followed by Australia and the UK. Cettire also has a logistics presence in 50 emerging markets. It does not own any inventory but acts as a drop shipper.
Cettire sales reached $141.3 million, up 122 per cent, over the four months to April 30 against the previous corresponding period.
Adjusted earnings before interest, tax, depreciation and amortisation – excluding expenses associated with its float, share-based payments, unrealised currency movements and derivative movements – was at least $7 million, on a delivered margin greater than 20 per cent.
Cettire wound back marketing investment to a high single-digit percentage of sales revenue.
The company’s cash balance was about $39 million at April 30, reflecting the settlement of trade payables from the seasonally larger December quarter. In the December half, payables ballooned to $40 million, up from $25 million at June 30, 2022.
Earlier this year Cettire delayed its move into mainland China and the beauty segment to focus on its profitable core markets.
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