Image source: NicoElNino @shutterstock

Highlights

  • Cettire is an online retailer of luxury goods, engaged in selling accessories, shoes and clothes
  • In 1HFY24, the company witnessed 89% rise in its sales revenue to AUD 354.30 million
  • Mintz (Dean) has highest stake in CTT with a shareholding of nearly 29.98%

Cettire Limited (ASX: CTT) is an ASX-listed online retailer, which offers a large selection of in-demand personal luxury goods. The company provides access to over 2,500 luxury brands and 500k products including clothing, bags, shoes to accessories.

In the first half of the financial year 2024 (1HFY24), the company recorded almost 89% increase in its sales revenue to AUD 354.30 million, 56.29% YoY rise in adjusted EBITDA to AUD 26.10 million and 4.22% YoY surge in average order value to AUD 791.0.

During the reported period, CTT’s focus was on scaling localisation features deployed in FY23, covering localised payment and multi-language options. This strategy resulted in robust growth in emerging markets and gross revenue in these market jumped 138% YoY in 1HFY24.   

Top 10 shareholders of CTT

The top 10 shareholders of CTT have around 63.04% shareholding in the company, while the top four have nearly 58.36% of the shareholding. Mintz (Dean) and Regal Partners Limited have highest stakes in the firm, with a shareholding of ~29.98% and ~14.17%, respectively.

Recent business update

Through an ASX-update dated 27 May 2024, the company issued a clarification concerning the allegations made by a leading Australian publication. The media article claimed that through CTT’s platform, non-genuine products are being sold and cited a report by a short seller. The short seller had short position in CTT and intended to benefit from the short-term fall in its share price.

In a statement, the company said that it has high level of confidence in the sustainability of its supply chain and authenticity of the products sold and available at its platform.

On 12 April 2024, the company released a trading update for the third quarter of FY24 (3QFY24). During the latest quarter, the company witnessed 88% annual rise in its sales revenue to AUD 191 million, backed by 12% YoY surge in average order value to AUD 832 and increase in contribution from repeat customers.

In 3QFY24, adjusted EBITDA stood at AUD 6.0 million and active customers reached around 644k, up 84% over previous corresponding period.

Outlook

The company shared the belief that it is well positioned for the fourth quarter of FY24, on the back of seasonally improving metrics, increased supply and resilient demand across both established and emerging markets.

In 4QFY24, the company intends to enter China market and has made substantial progress to meet its objectives. This strategic milestone is expected to boost its growth.

Share performance of CTT

CTT shares closed 2.06% lower at AUD 2.43 apiece on 28 May 2024. With this, in the last one year, CTT’s share price has increased by 22.68%, while in the last three months, it has declined by over 50%.

The 52-week high of CTT is AUD 4.90, recorded on 1 March 2024, while the 52-week low is AUD 1.83, recorded on 14 June 2023.

CTT Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 29 May 2024. The reference data in this report has been partly sourced from REFINITIV.