The Cettire Ltd (ASX: CTT) share price is having a fantastic day today. At the time of writing, the Cettire share price is up 8.42% to $1.30. This comes after closing at $1.18 yesterday and opening at $1.27 this morning. It was even better for Cettire shareholders earlier in the day too. Around lunchtime, CTT shares hit an intra-day high of $1.33 a share, which put them up more than 10% on yesterday's close.
Cettire is a new company on the ASX, having only listed back in December last year. However, it sure has been a winner since then. Cettire only listed at 50 cents a share on 18 December. That means that this company, based on today's prices, has given investors a 159% return since its IPO, and 164% year to date. Not bad for 3 months' work.
So who is Cettire? And why is this company rocketing once again today?
Attire at Cettire
According to Cettire, the company is an "online destination exclusively for luxury fashion". The company sells a wide range of products (over 160,000) from over 1,300 designer labels, including well-known luxury brands like Gucci, Dolce and Gabbana, and Prada. The company stocks both men and women's clothing, with items ranging from your standard t-shirts, jackets and jeans, to bags, jackets, belts, hats, luggage, and sunglasses.
Cettire has adopted an online-only model, and services Australia and New Zealand as well as other countries like the United States, Canada, Japan, Saud Arabia, Hong Kong, Taiwan, and China, amongst many others.
Why is the Cettire share price moving today?
It's unclear why Cettire shares are moving so decisively today. There have been no major announcements or official news out of the company since 12 March. That was an announcement from S&P Global that Cettire would be joining the All Ordinaries Index (ASX: XAO) in the March rebalance. Index inclusions often prompt buying pressure, so this could be relevant.
But it's more likely that today's moves are a result of momentum. Cettire released its earnings for the first half of the 2021 financial year (1H21) back on 26 February. It's possible that investors are still piling into this company in the aftermath, given the strength of the numbers Cettire reported.
For 1H21, the company announced that gross revenues had grown 476% from $9.2 million in 1H20 to $52.7 million in 1H21. More than 90% of this revenue came from outside Australia. Active customers also grew by 319% to 67,700, while site visits were up 300% year on year to ~5.8 million.
Meanwhile, earnings before interest, tax, depreciation and amortisation (EBITDA) also grew 300% to$3.6 million. Net profits after tax were also on the up, rising 354% to $2.3 million. Product margins also grew from 35.7% in 1H20 to 38% in 1H21.
Needless to say, it was a very pleasing set of numbers that came out last month. Evidently, the market agrees. Since 26 February, the Cettire share price is up 35.8%.
On its current share price, Cettire has a price-to-earnings (P/E) ratio of 133. That tells us that while the market has rewarded Cettire for its performance so far, it is also clearly expecting this growth to continue. At the time of writing, Cettire shares have a market capitalisation of $491.8 million.
