The Cettire Ltd (ASX: CTT) share price has continued its strong run and is racing higher again on Friday.
In afternoon trade, the online luxury fashion retailer's shares are up 12% to $1.18.
This means the Cettire share price is now up 30% this week despite a sizeable decline on Monday.
Image source: Getty Images
Why is the Cettire share price rocketing higher this week?
There have been a couple of catalysts for the impressive rise by the Cettire share price this week.
The first is the rebounding All Ordinaries index after investor sentiment improved greatly. This has seen a number of beaten down All Ords shares pushing higher this week.
But the main catalyst has been the release of the company's first quarter update earlier this week.
That update showed that rising living costs and global recession concerns haven't impacted the sale of luxury goods on Cettire's online platform.
How is Cettire performing?
According to the release, Cettire's first quarter gross revenue increased 62% over the prior corresponding period to $84.4 million.
This was underpinned by the year over year doubling of its active customers to 287,626 and improvements in repeat customer spending.
Also getting investors excited was news that the company was profitable at an operating level during the quarter. Cettire reported adjusted EBITDA of $5.5 million, on a delivered margin greater than 20%. This was supported by a reduction in its marketing investment as a percentage of sales revenue to low double-digits.
Looking ahead, the company's CEO, Dean Mintz, stated that the "demand environment remains health." In light of this, he revealed that he has "confidence in our Q2 outlook."
Judging by the Cettire share price reaction, it appears as though investors share this confidence. Though, time will tell what happens in this uncertain economic environment.
