The Cettire Ltd (ASX: CTT) share price is clawing back its heavy losses realised at the beginning of December. This comes despite no new announcements from the company since its annual general meeting (AGM) last month.
During mid-afternoon trade, the online luxury goods retailer’s shares are changing hands for $3.46, up 9.15%. It’s worth noting that despite today’s strong rise, its shares are down almost 10% since last week.
What’s driving Cettire shares higher?
While the rebound could be attributed to the Cettire share price being oversold recently, it appears investors remain optimistic about the company’s opportunities.
With Christmas around the corner, the retail industry is looking to cash in on the difficult year consumers had to endure. Cashed-up families are expected to splurge big for the festive season, and Cettire is in the hot seat.
An FY22 trading update provided by the company indicated its growth momentum had continued with triple-digit increases across key metrics.
As such, for the first four months of the fiscal year, gross revenue soared 184% year-on-year. Sales revenue jumped 172% over the same period on the back of the company’s marketing initiatives and customer acquisition investment.
Cettire noted that, as a result, it is experiencing strong traffic growth of 379% compared to the previous year. Management is aiming to improve the conversion rates to maximise revenue potential.
The active customer base stands around 158,000, which represents a 220% uplift year-on-year.
Cettire share price snapshot
Over the past 12 months, the Cettire share price has accelerated by almost 600%, with year-to-date up an astonishing 630%. The retail industry has been a big winner from COVID-19, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) roaring 25% higher in 2021.
Based on today’s price, Cettire presides a market capitalisation of around $1.31 billion, with approximately 381.24 million shares on issue.