The Cettire Ltd (ASX: CTT) share price is in the spotlight this morning after releasing its full-year results for the 2021 financial year.
At the time of writing, shares in the online luxury goods retailer are down more than 3%.
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Cettire share price climbs after beating forecasts
- Gross revenue of $124.5 million, up 333% year-over-year on a constant currency basis
- Sales revenue of $92.4 million, up 304% year-over-over on a constant currency basis
- Statutory net profit after tax swung from $1.53 million to a loss of $251,000
- Active customers increased 285% to 114,830
- Operating cash flow of $12.7 million, up 131% on FY20
- Cash position at the end of June 2021 of $47.1 million with no debt
What happened in FY21 for Cettire
For the 12 months ended 30 June, Cettire achieved an exceptional increase of 304% in sales revenue to $92.4 million. This result exceeded the company's previous forecasts by 32%. The exceptional performance was driven by considerable increases in active customers and product order numbers.
Furthermore, orders increased 353% to more than 170,000 during the financial period. An expansion in product range and broadening of its supplier base helped Cettire attract new sales.
On top of this, the luxury goods reseller made headway on direct brand partnerships during the tail end of the financial year. This followed critiques reported in The Australian Financial Review regarding the company's relationship with third-party suppliers and wholesalers. At the end of the period, Cettire's available products exceeded 200,000 across 1,700 brands.
Additionally, the company plans on further accelerating its marketing spend to drive greater traffic and customer conversion. At the same time, Cettire will selectively explore new market adjacencies to expand upon its addressable market. If successful in expanding its total addressable market, this could bode well for the Cettire share price.
What did management say?
Commenting on the result, Cettire founder and CEO Dean Mintz said:
It has been an exceptional year for Cettire, with the Company rapidly growing. I am particularly proud of the substantial increase in active customers, very strong revenue growth, robust product margins and the increasing proportion of revenues from repeat customers.
The achievements over the past 12 months, both operationally and financially, demonstrate the traction we have with consumers, the scalability of our business model and the benefits of our proprietary technology platform.
Additionally, with respect to the company's performance so far in FY22, Mr Mintz stated:
Our growth trajectory has continued in FY22, with a strong July. Our number one priority is to maximise the global revenue potential of the Company by taking a long term view. We will continue to invest in opportunities aligned to our strategy, with a near term focus on customer acquisition, technology enhancements and building organisational capability.
What's next for Cettire?
In the year ahead, Cettire will be continuing to invest in its proprietary technology platform and enhance its supply relationships. In addition, the company will be working on a mobile app and further investments in AI and brand awareness to gain additional revenue growth.
Already in July FY22, Cettire has experienced a 181% lift in unaudited gross revenue compared to the prior corresponding period. However, the company refrained from providing specific guidance.
Cettire share price snapshot
The Cettire share price has rewarded shareholders handsomely since its initial public offering (IPO) less than a year ago. Since listing, shares have soared 406% — in line with its meteoric revenue growth. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) added 12.6% during the same timeframe.
