Cettire (ASX:CTT) share price gains on new $100b potential market

Here's what's moving the online luxury retailer's share price on Thursday.

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Key points

  • The Cettire share price is 1.36% higher this morning, trading at $2.99
  • The gain follows news the luxury retailer is expanding into beauty products
  • Its expansion will include a new vertical on its website, set for a soft launch in March

The Cettire Ltd (ASX: CTT) share price is soaring this morning after the company announced that it's launching a 'beautiful' new vertical.

The online luxury goods marketplace will soon be offering beauty products – a market said to be worth around $100 billion globally.

At the time of writing, the Cettire share price is $2.99, 1.36% higher than its previous close.

However, it opened 5% higher this morning, swapping hands for $3.11 in early morning trade.

Cettire share price gains on 'beautiful' expansion

The Cettire share price is in the green on news the retailer could soon be selling more than 25,000 beauty products from more than 600 brands.

Cettire's beauty vertical will include skincare, haircare, fragrances, and more to appeal to both women and men.

It's expected to undergo a soft launch later this quarter.

Between then and now, the company plans to finalise supply arrangements and its commercial proposition.

According to the company, the beauty category houses an approximately $100 billion global opportunity within the personal luxury goods market.

Additionally, it believes expanding its offerings will allow its customers to purchase multiple high value items during their visit to the site.

Cettire founder and CEO Dean Mintz commented on the company's extension into the beauty market, saying:

Beauty represents a large and growing adjacency within the global personal luxury goods market.

It is a natural extension of our range, particularly as we continue to rapidly scale site traffic and active customers while growing brand awareness globally.

The scope to integrate fashion and beauty provides excellent potential for cross-promotion and provides a further point of differentiation for Cettire.

Today's news has dropped just months after the company announced its expansion into another key vertical – children's clothing.

After Cettire announced its move into kid's clothing on 1 July 2021, its share price launched 4.92%.

However, the company's stock hasn't been trading so well recently.

Over the last 30 days, it has fallen 18%. Though, it's still 346% higher than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns 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.

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