Luxury online retailer Cettire Ltd (ASX: CTT) has fast become a considerably successful company. After debuting on the ASX in December, the Cettire share price has surged 353%. The company now boasts a market capitalisation of $777 million.
Likely, no one is more excited about the company’s success as founder and CEO, Dean Mintz.
Rich lister in the making
Cettire came to life through an incubator in 2014 and was quickly prioritised as a preferred concept.
Detailed in the prospectus, “Dean identified a market opportunity to build a global online proposition in the personal luxury goods market, a large market characterised by relatively low (but growing) digital adoption, high fragmentation and scope for attractive unit economics.”
The company was officially launched in October of 2017, experiencing substantial growth since. Under the cloak of a ‘luxury goods retailer’, Cettire runs on a proprietary technology platform. One that has been developed to facilitate the entire customer fulfilment cycle, integrate supplier inventory systems, enable dynamic pricing, and harness data-driven marketing decisions.
Boasting a shareholding of 66% of shares on issue, Mr Mintz clearly still believes there’s plenty of runway for the company. The global personal luxury goods industry is estimated to have a total addressable market of $460 billion.
At Friday’s closing Cettire share price of $2.03, Mintz’s stake is worth roughly $510 million. Based on last year’s Australian Financial Review Young Rich list, that would place the Cettire founder in 14th spot – wedged between Envato founder Cyan Ta’eed and Zip Co Ltd (ASX: Z1P) founder Larry Diamond.
Sending the Cettire share price higher
Most recently, the company’s shares have been flying higher following two announcements.
Firstly, Cettire provided a trading update on 3 May for the company’s third quarter FY21. Rapid growth in sales revenue of 331% to $18.5 million for the quarter resulted in an upgrade to FY21 forecasts.
Secondly, the luxury goods retailer announced a partnership with Klarna on Wednesday. Under the deal, Cettire will provide its customers shopping in Australia and the United States with Klarna’s buy now, pay later services.
The Cettire share price finished 9.1% higher on Friday, rising to $2.03 per share. Earlier in the day, the company’s shares hit a new all-time high of $2.13.