Cettire share price jumps 11% on dazzling FY23 growth

Consumer spending weakness hasn't been able to stop Cettire's rapid growth.

| More on:
A woman is excited as she reads the latest rumour on her phone.

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

The Cettire Ltd (ASX: CTT) share price is leaping higher on Thursday.

In morning trade, the online luxury retailer's shares are up 11% to $3.10 following the release of its FY 2023 results.

Cettire share price leaps on strong growth

  • Gross revenue up 87% to $539.2 million
  • Sales revenue up 98% to $416.2 million
  • Delivered margin up 156% to $95.6 million
  • Adjusted EBITDA of $29.3 million
  • Net profit after tax of $15.97 million
  • Cash of $46.3 million, with zero debt

What happened during FY 2023?

For the 12 months ended 30 June, Cettire continued its strong growth and reported an 87% jump in gross revenue to $539.2 million.

This reflects a 63% increase in active customers to 423,000, sustained strength in repeat customer purchasing behaviour, higher average order value, and healthy demand for luxury goods. In respect to repeat customers, 58% of Cettire's gross revenue is now from repeat customers. This is up from 50% a year ago.

Things were even better for Cettire's earnings, with both its EBITDA and net profit metrics swinging from losses in FY 2022 to profit in FY 2023.

A key driver of this was its delivered margin performance. It increased by 156% over the prior corresponding period to $95.6 million. This represents 23% of sales revenue, which is up from 17.8% a year ago.

Management believes this demonstrates the successful execution of several cost optimisation initiatives outlined in its FY 2022 results, which reduced fulfilment cost per order.

In addition, the company's paid customer acquisition expenses came to 8% of sales revenue in FY 2023, which is a big improvement from 14.9% in the last financial year.

Big returns for investors

The Cettire share price is now up more than 250% over the last 12 months.

Management commentary

Cettire's founder and CEO, Dean Mintz, said:

FY23 has been another year of tremendous growth and transformation for Cettire. Through strong execution against our strategy to maximise profitable revenue growth, Cettire grew rapidly whilst also delivering significant profitability and cash generation.

Cettire is a highly nimble business, with a largely flexible cost base. This enables us to adjust quickly to market conditions and optimise performance. The pace at which we have been able to drive improved performance through FY23 is something I am particularly proud of.

Outlook

Possibly giving the Cettire share price an additional boost today was news that FY 2024 has started strongly.

Management advised that the positive trading momentum continues into FY 2024 as healthy demand remains.

During the month of July, Cettire delivered positive adjusted EBITDA, with sales revenue increasing by approximately 120% over the prior corresponding period. Mr Mintz concludes:

We are pleased by the early trading in FY24, with all our key markets performing strongly. Cettire is well positioned for another strong year of growth and profitability. We are well advanced in our preparations for China market entry, which remains a very attractive market opportunity and offers significant incremental growth potential.

Motley Fool contributor James Mickleboro 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.

More on Earnings Results

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »

increasing rural asx share price represented by happy looking sheep
Earnings Results

Why is this ASX All Ords stock staying strong as profits crash 76%

How is this company's share price marching higher after mowing down more than three-quarters of its profits compared to a…

Read more »

Two men sit side by side on a couch with video game controls in their hands and expressive looks on their faces as they react to the action in front of them in a home setting.
Earnings Results

Guess which ASX 200 stock is surging 11% on an 'outstanding' result

This ASX gaming giant just posted a 17% jump in profits, and its shareholders are basking in the glory.

Read more »

Agricultural ASX share price on watch represented by farmer in field looking at tablet computer.
Earnings Results

Graincorp share price lifts off as dividend is maintained and debts plunge

ASX 200 investors are bidding up the Graincorp share price today. But why?

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Earnings Results

Why is this ASX 200 stock avoiding the market selloff and pushing higher?

Not all shares are falling with the market on Thursday.

Read more »