The Cettire Ltd (ASX: CTT) share price continues to rise. At the time of writing, it's up more than 7%.
It has been an extraordinary 2021 for Cettire. Over the last month it's up 48%. In six months it has rise 143%. Since the start of 2021 it has soared around 800%.
Rapid rise
Cettire is a global online retailer, which offers a wide selection of personal luxury goods through its website, Cettire.com. It has a catalogue of over 1,3000 luxury brands and more than 160,000 products across clothing, shoes, bags and accessories. It has also recently taken the step to expand into the children's wear segment and expand its addressable market.
This business is capitalising on the large increase in e-commerce demand from global consumers.
In FY21 it saw a significant increase of revenue. Reported gross revenue increased 333% to $124.5 million. In constant currency terms, this was an increase of 384%. Reported sales revenue soared 304% to $92.4 million. In constant currency terms, this was growth of 352%.
The difference between gross revenue and sales revenue is that the sales revenue includes allowances and returns from customers.
Active customers jumped 285% to 114,830. More customers are returning to Cettire to purchase more goods. In FY21, 40% of gross revenue came from repeat customers, whilst in FY20 this was 26%.
Cettire said that its reported product margin was 37% and a delivered margin of 24%. In dollar terms, the product margin rose 307% to $33.8 million and the delivered margin increased 243% to $22 million. The profitability of the business could have an influence on the Cettire share price over time.
At an underlying/adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) level, Cettire was profitable in FY21. It made $2.1 million of adjusted EBITDA. This metric excludes expenses associated with the initial public offering (IPO), share-based payments and unrealised foreign currency movements.
At the bottom line, it made a net loss after tax of $0.3 million. Operating cashflow surged 131% to $12.7 million.
Cettire is expecting more growth in FY22
When the luxury e-commerce ASX share released its FY21 result, it also gave some optimistic comments about FY22 and its outlook. Investors may factor in the outlook into their thoughts on the Cettire share price.
The business said its positive trading momentum had continued into FY22, with July 2021 gross revenue increasing 181% on July 2020.
Cettire believes that there is a significant market penetration ahead. The Cettire founder and CEO Dean Mintz said:
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.
Our focus in FY22 is on continuing to enhance our customer proposition, centred around our vast range of luxury products, value and rapid fulfilment, all of which are enabled by our deep and diverse supply chain and world class, proprietary technology.
