The Cettire Ltd (ASX: CTT) share price is up today after the luxury e-commerce retailer revealed that its revenue has grown by 172% in the first few months of FY22.
Cettire’s strong start to FY22
The online retailer is holding its annual general meeting (AGM) today and gave a trading update for the four months to October 2021.
It said that gross revenue increased 184% year on year to $78.9 million, whilst sales revenue grew 172% to $57.8 million. Gross revenue doesn’t include customer returns, but sales revenue includes allowances and returns.
Unique website visits increased 231% to 10.4 million and the number of orders went up by 209% to 107,676.
However, there were a couple of metrics that went down a little. The conversion rate decreased from 1.11% to 1.03%. Cettire’s average order value also declined by 7% to $734.
Active customers soared by 220% to 158,260.
Management comments
The Cettire founder and CEO Dean Mintz said: “The operating strategy we are executing on has underpinned continued strong trading results from the business. As offline stores reopen with COVID-19 restrictions easing, Cettire’s growth trajectory continues unabated with gross revenue up 184%, the number of orders more than tripling and active customers growing very strongly.
“The focused investment to further enhance Cettire’s solid foundations is delivering results. Having invested in customer acquisition and executed strongly, October monthly traffic increased 379% year on year. In addition, we are seeing very positive early signs from the migration to our proprietary storefront, with sales growth in “migrated” markets outpacing the company.”
Direct brand partnership
Cettire also announced today that it has signed an agreement with Staff International to directly integrate products from its licensed brand portfolio.
Staff International acts as the industrial platform for a selection of OTB’s labels including Maison Margiela and its MM6 advanced contemporary line, Marni and Diesel’s shoes. Staff International also holds exclusive worldwide licenses for brands DSquared2, Just Cavalli and Koche.
As part of a broader collaboration, Staff International will work with Cettire to make part of its collection exclusively available on Cettire’s platform.
Summary thoughts on the Cettire share price
Cettire continues to grow at a very fast pace and its share price certainly reflects that as well, which has appreciated a ton since I first mentioned it half a year ago.
Is it a good time to buy Cettire? One would need a crystal ball to answer that question. It could go on to become a very large global retailer of luxury products. Or it’s priced far too optimistically today. Only time will tell which one it is.
I think it’s a very interesting business, but there are other ASX growth shares I’m more focused on, due to the current valuation.
