Online luxury goods retailer, Cettire Ltd (ASX: CTT) now sports a market capitalisation larger than that of affordable online retailing megalith Kogan.com Ltd (ASX: KGN). Following its share price's recent rally, Cettire, which doesn't hold any inventory, has a market capitalisation of around $1.2 billion.
For comparison, Kogan, which faced a slug of inventory issues in financial year 2021, has a market capitalisation of approximately $1.1 billion.
Over the last month, the Cettire share price has gained a massive 41%. Right now, its share price is $3.17, 2.9% lower than its previous close.
Let's take a look at what's been driving Cettire on the ASX lately.
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The Cettire share price's incredible run
The Cettire share price is having a great month on the ASX, with its sights set on boosting its value even more.
Right now, the Cettire share price represents 532% more than its prospectus' offer price of 50 cents per security. The company's Initial Public Offering (IPO) occurred on 17 December 2020.
Additionally astounding, is that under Cettire's prospectus' offer price, it expected a market capitalisation of around $190 million.
The company has seemingly made bank from the luxury goods market. However, it doesn't hold any of its own inventory and doesn't liaise with big-name fashion houses.
Instead, Cettire sources products from a diversified network of suppliers that ship directly to customers. It often has multiple suppliers for single products.
Over financial year 2021, the results of which the company announced on 31 August, Cettire's sales revenue increased by 304%. At the end of the 12-month period, it had around 200,000 products from 1,700 brands on its online store.
Potentially continuing to drive the Cettire share price, is the company's positive outlook for financial year 2022.
It plans to launch a children's wear segment, invest in its marketing, increase the number of products available on its platform, and build on and improve its technology to provide positive customer experiences.
