2 high-growth ASX shares profiting from the e-commerce boom

Cettire and Goodman are two e-commerce ASX shares growing quickly.

| More on:

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are a number of ASX shares that are growing quickly due to the e-commerce explosion that has occurred since the onset of the COVID-19 pandemic.

These businesses aren’t expecting the boom of e-commerce to slow down. In-fact, they are expecting more sales or revenue:

Goodman Group (ASX: GMG)

Goodman is one of the biggest industrial property groups in the world.

It’s currently rated as a buy by quite a few different analysts, including the broker Morgan Stanley. This broker has a price target of $26.50 on the business, suggesting the broker thinks it could gain almost 10% over the next 12 months.

Morgan Stanley was pleased to see that Goodman Group upgraded its profit guidance for FY22 off the back of its FY22 first quarter update. Logistics facilities continue to be in demand, with a particular reference to large US retailers.

Goodman says that it’s continuing to see structural changes, significant customer demand and intensification of use of sites in its target markets. This is leading to rental growth, increasing development activity, stronger than expected performance from its partnerships and higher levels of profitability.

The real estate e-commerce ASX share is expecting to grow assets under management (AUM) from $62 billion at 30 September 2021 to around $70 billion by June 2022, which is the end of FY22. The AUM growth is being driven by strong revaluation gains, development completions and net acquisitions.

COVID-related disruptions in FY22 have been managed so that there has been less impact on the full year projections than initially assumed. Operating earnings per security (EPS) growth is now expected to be more than 15% in FY22.

Cettire Ltd (ASX: CTT)

Cettire is a luxury e-commerce retailer that sells around 200,000 products from around 1,700 luxury brands. Some of the products it sells includes clothing, shoes, bags and accessories.

The e-commerce ASX share is generating triple digit revenue growth. In the first four months of FY22, sales revenue was up 172% to $57.8 million. Cettire’s active customer number grew at an even faster rate – it went up 220% to 158,260. That growing customer base is likely to contribute an increasing level of revenue – 40% of FY21 revenue came from repeat customers.

Despite the bricks and mortar stores reopening around the world, Cettire’s sales continue to grow unabated.

Cettire has been investing in customer acquisition and executing strongly, leading to October monthly traffic increasing by 379% year on year. It’s also seeing “very positive” early signs from the migration to its proprietary storefront, with sales growth in ‘migrated’ markets outpacing the company’s overall growth.

FY21 showed that the business is already generating positive profit at certain lines of its financials. Excluding IPO expenses, share-based payments and unrealised foreign exchange movements, FY21 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was $2.1 million and operating cashflow was $12.7 million (up 131%).

The e-commerce ASX share has said that its number one priority is to maximise the global revenue potential of the company by taking a long-term view, with continuing investment in winning customers, technology enhancements and building organisational capability.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

Confident male Macquarie Group executive dressed in a dark blue suit leans against a doorway with his arms crossed in the corporate office
Growth Shares

Analysts name 2 ASX growth shares to buy this week

These growth shares could be buys according to analysts...

Read more »

A happy businessman pointing up, inidicating a rise in share price
Growth Shares

Analysts name 3 buy-rated ASX growth shares for July

Here are three growth shares that could be in the buy zone in July...

Read more »

A man with a yellow background makes an annoncement, indicating share price changes on the ASX
Growth Shares

Experts say these ASX 200 growth shares are buys with 20%+ upside

These growth shares could be buys according to experts...

Read more »

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

3 excellent ASX growth shares that analysts are excited about

Analysts rate these growth shares very highly...

Read more »

A happy woman raises her face in celebration, indicating positive share price movement on the ASX
Growth Shares

Analysts say these ASX growth shares have huge upside potential

These growth shares could have heaps of upside...

Read more »

a graph indicating escalating results
Opinions

Where to find value in growth? Here are 2 ASX shares I’d buy in July

Both of these ASX shares could achieve good things in the future.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Growth Shares

Analysts tip big returns from these ASX growth shares

Here are two ASX growth shares analysts expect big returns from...

Read more »

happy investor, share price rise, increase, up
Growth Shares

Here’s why brokers rate these ASX growth shares as buys

Here's why these growth shares could be buys next week...

Read more »