The Cettire Ltd (ASX: CTT) share price is struggling this morning after the company announced its latest brand partnership and released a trading update on the first 4 months of financial year 2022.
Earlier, Cettire shares were trading as high as $4.77. But they have since lost those gains and, at the time of writing, are trading at $4.53, the same as yesterday's close.
Let's take a closer look at the news out of the company.
Cettire share price unfazed by upbeat news
New direct brand partnership
Cettire has partnered with fashion-focused research and developer, producer, and distributer Staff International in a deal that will see the latter's brands hit the Cettire site.
Staff International is a subsidiary of international fashion group OTB. Staff International works as the industrial platform for some of OTB's labels.
The direct brand partnership will also see Cettire exclusively housing part of Staff International's collection.
Cettire states its integration with Staff International is incremental to its existing access to inventory.
Cettire founder and CEO Dean Mintz commented on the partnership, saying:
Staff International has a reputation for utilising innovative techniques to push traditional boundaries. Partnering with Cettire enables their products to be directly available to a new and fast-growing digital audience of luxury goods customers.
Trading update
Another piece of news out of Cettire is an update on the company's trading performance over the 4 months ended 31 October.
The update was released ahead of Cettire's annual general meeting, set to be hosted this afternoon.
Commenting on the company's performance over the first 4 months of financial year 2022, Mintz stated:
The operating strategy we are executing on has underpinned continued strong trading results from the business. As offline stores reopen with COVID-19 restrictions easing, Cettire's growth trajectory continues unabated…
The focused investment to further enhance Cettire's solid foundations is delivering results. Having invested in customer acquisition and executed strongly, October monthly traffic increased 379% year-on-year. In addition, we are seeing very positive early signs from the migration to our proprietary storefront, with sales growth in "migrated" markets outpacing the company.
Over the 4-month period, Cettire recorded $78.9 million of gross revenue – a 184% increase on that of the prior comparative period.
Cettire received 107,676 orders, a 209% increase on the same 4-month block of 2020. Its website also got 10.4 million views over the period.
Unfortunately, Cettire's conversion rate and average order value both dropped 7% on those of the prior comparable period.
However, it ended the 4 months with 108,865 more active customers than it had at the end of October 2020.
