Guess which ASX All Ords share is leaping higher on a return to profit

It's a good day to be invested in this luxury retail stock.

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Key points

  • The Cettire share price is rocketing 4% at the time of writing to trade at $1.895
  • Its gain comes on the company's return to the green – it posted an $8 million profit for the first half this morning
  • And it expects the positive momentum to continue this financial year

The share price of All Ordinaries Index (ASX: XAO) luxury online retailer Cettire Ltd (ASX: CTT) is rocketing after the company posted positive first-half earnings.

Right now, the Cettire share price is soaring 4.12% to trade at 1.895.

Here are some of the highlights:

ASX All Ords share leaps as revenue soars 57%

What else happened last half?

Cettire boasted 313,982 active customers last half – a 50% increase – while 56% of its gross revenue came from repeat customers. Its average order value also climbed 7% to $759.

Cost optimisation initiatives reduced fulfilment costs and efficiencies in marketing investments saw paid acquisition costs drop to just 7.9% of sales revenue.

Finally, amendments to the company's returns policy supported a decrease in its rate of returns.

What did management say?

Cettire founder and CEO Dean Mintz commented on the earnings driving the All Ords share higher today, saying:

It has been an exceptional half for Cettire as we continue to grow rapidly while delivering significant profitability.

We remain laser focused on executing our strategy to maximise profitable revenue growth. I am particularly pleased that we have been able to continue our growth trajectory while cycling a period of significant marketing investment in [the second quarter].

What's next?

Cettire expects last half's positive momentum to continue. It notes its EBITDA profitability was maintained last month, and it's expected to stay that way for the remainder of this fiscal year.

Meanwhile, last month's sales revenue was 80% higher than that of January 2022.

The company's near-term investment priorities include customer acquisitions, technology investments, and building organisational capacity.

Cettire share price outperforms the ASX All Ords

The Cettire share price has been soaring ahead of the All Ords in recent weeks.

The stock has gained a whopping 54% so far this year compared to the All Ords' 8.7% rise.

Looking further back, however, Cettire shares have fallen 33% over the last 12 months. In that time, the index has lifted 4.6%.

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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cettire. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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